Airbus and Cathay Group Forge $70 Million Partnership for SAF

Airbus and the Cathay Group have entered into a significant partnership, committing up to US$70 million to advance the production of sustainable aviation fuel (SAF) both in Asia and globally. This pivotal agreement was announced in Hong Kong during the IATA World Sustainability Symposium, with the ceremony hosted by Alex McGowan, Chief Operations and Service Delivery Officer of Cathay, and Anand Stanley, President of Airbus Asia-Pacific.

Under the terms of this partnership, Airbus and Cathay will work together to identify and evaluate projects that promote the scaling of SAF production, aiming for substantial advancements by 2030 and beyond. The projects will be judged on their commercial viability, technological maturity, and potential for long-term offtake, reflecting a comprehensive approach to enhancing SAF production capabilities.

Collaboration for a Sustainable Future

Scaling up SAF production necessitates extensive collaboration across various sectors, including policymakers, investors, producers, and consumers. This co-investment agreement exemplifies the spirit of partnership between Airbus and Cathay, aiming for a more impactful production capability in the aviation industry.

“SAF remains the most important lever for Cathay and the wider aviation industry to drive toward our decarbonization goals,” stated Alex McGowan. He emphasized that this partnership with Airbus not only strengthens their commitment to building a scalable SAF industry but also aligns with their broader strategy of investing in future technology and production capacity. This includes their recent investment in the oneworld BEV SAF Fund as they actively expand SAF usage through collaborations with similar organizations.

On the other hand, Anand Stanley remarked, “This agreement reflects the shared commitment of Airbus and Cathay to make a real difference.” He highlighted that the production and distribution of affordable SAF at scale require an unprecedented cross-sectoral approach. The partnership serves as a concrete example of how both companies aim to catalyze production in the most suitable locations to meet customer needs.

Advocating for Supportive Policies

In addition to investment and production efforts, the partnership includes a commitment to advocate for supportive SAF policies across Asia, addressing both supply and demand perspectives. Given Asia’s robust potential for feedstock supply and production capacity, Airbus and Cathay plan to leverage their global expertise to influence policies that enhance the accessibility and affordability of SAF in the region.

Airbus and Cathay Group have a longstanding relationship that dates back to 1989, when Cathay signed its first order for Airbus aircraft. Currently, the Cathay Group operates 86 Airbus aircraft and has more than 70 additional aircraft on order for future delivery. This new investment marks a significant chapter in their ongoing collaboration, underscoring their shared vision for sustainable aviation.