Sustainable aviation fuel (SAF) is seen as the key to decarbonizing aviation – however, high costs, a lack of production capacities, and operational hurdles are hindering the change. How can airlines still successfully integrate SAF into their business models? Three strategic fields of action show how sales, purchasing, and partnerships can become the driving force behind the transformation.
As a sustainable aviation fuel, SAF is considered one of the most promising ways to significantly reduce CO₂ emissions in aviation. The targets are ambitious – according to the ReFuelEU regulation, the share of SAF should be 2 percent by 2025, and even reach 70 percent by 2050. However, there is still a wide gap between the target and reality: There is a lack of production capacities, the anticipated price drop has not yet materialized, and many airlines are facing the question of how SAF can actually be integrated effectively into their existing business models.
SAF is not a standard product – depending on the production method, it can cost more than conventional kerosene. Significant investments are needed to meet future demand – in Europe alone, over 100 new plants would need to be built by 2050. To make this a reality, some airlines are supporting the construction of SAF production facilities, in part through direct investments. Power-to-liquid technologies are especially promising, although they are still far from being available on an industrial scale. We see three key levers to turn SAF from a trend into reality.
In order for SAF to actually be deployed across the board, airlines and airports will need to revise their strategies within sales, purchasing, and partnerships.
Sustainability is increasingly becoming a key factor in bookings – especially for corporate customers. SAF can provide real added value here:
Offering “green seats” for key customers – with guaranteed SAF availability and CO₂ credits via the book-and-claim model
Communicating the positive climate effects transparently and credibly – ideally backed up by verified certificates
Jointly driving innovation through co-investments with companies
If you want to use SAF reliably, your procurement must be aligned with a long-term, collaborative approach:
Concluding long-term contracts with SAF producers
Diversifying supply chains and adapting logistics processes such as storage and blending
No regulatory crediting without complete documentation
Procurement models should be selected based on the distribution of risk between the supplier and customer
This task cannot be accomplished alone. Strategic alliances, for example with the travel management departments of major corporate customers and SAF producers, hold significant potential for success:
Corporate customers of airlines directly co-finance the purchasing of SAF in return, for example, for reduced rates and the automatic transmission of certificates
SAF producers receive guaranteed purchase quantities, giving them greater planning security
SAF is the key to a green future in the aviation sector. Despite high costs and production hurdles, airlines can achieve their sustainability goals through clever strategies and strong partnerships. Collaborations across the value chain are crucial for deploying SAF on a large scale and sustainably transforming the industry.
Müller, O. / Kirschberger, S.
