AirAsia and Airbus Join Forces to Drive Sustainable Aviation in Southeast Asia

AirAsia and Airbus have announced a new milestone in their long-standing partnership, aimed at accelerating sustainable aviation practices and reducing carbon emissions throughout the ASEAN region. This collaboration, formalized through a Memorandum of Understanding (MoU) signed by their sustainability teams, marks a significant step toward a greener future for aviation in Southeast Asia.

The partnership will focus on two key areas:

1. Sustainable Aviation Fuel (SAF) Production:

The MoU outlines a joint research effort to explore decentralized SAF production within Southeast Asia. This involves leveraging alternative feedstocks and innovative technologies to enhance the supply of SAF in the region, ultimately supporting the commercial development of these emerging projects. This research-driven approach seeks to establish a sustainable and locally-sourced SAF supply chain, contributing to the region’s environmental goals.

2. Air Traffic Management (ATM) Optimization:

The partnership will leverage AirAsia’s expertise in fuel efficiency strategies and Airbus’ leadership in aeronautics to enhance ATM efficiency and reduce CO2 emissions. The collaboration will explore the implementation of advanced solutions developed under the Single European Sky ATM Research (SESAR) initiative, adapting these innovations for ASEAN airspace. This initiative aims to optimize flight paths, reduce delays, and minimize fuel consumption, contributing to a more efficient and sustainable air transportation system.

Capital A Chief Sustainability Officer, Yap Mun Ching, highlighted the importance of this partnership: “AirAsia will be a key partner of Airbus in ASEAN to test the feasibility of SAF output developed using alternative feedstock and technologies, as well as ground-breaking ATM initiatives supported by Airbus’ innovation teams. As a regional carrier based in five ASEAN countries, we bring unparalleled operational experience in the region to complement Airbus’ technological expertise. The partnership establishes a foundation upon which to build joint projects at multiple levels that address the broad needs of improving the environmental performance of the sector.”

Yap emphasized the aviation sector’s urgent need to invest in and scale up in-sector solutions critical to achieving decarbonization. She also highlighted that upgrading AirAsia’s fleet to the most fuel-efficient models is a key pathway for the airline to achieve its net-zero emissions target by 2050. In June, AirAsia welcomed its first new A321neo aircraft since the pandemic, and plans to receive five more by the end of the year. These new aircraft will be deployed in Malaysia and Thailand. Beginning in 2024, all Airbus aircraft deliveries to AirAsia will include a fuel blend containing 5% SAF.

Airbus Chief Sustainability Officer, Julie Kitcher, echoed the importance of collaboration: “Airbus is contributing to the decarbonisation of aviation around the world. That means working with our customers in every region, looking at all solutions available today and collaborating on research for future technologies. AirAsia is a key partner in the ASEAN region and we are excited to work with the airline to explore operational efficiency levers, including air traffic management and scaling up the production and distribution of SAF.”

AirAsia’s commitment to sustainability is evident in its order for 361 A321 aircraft, which are projected to reduce the airline group’s CO2 emissions by up to 10% compared to 2019 levels by 2035. Further reductions of 15% are expected through improved operational efficiencies and the use of SAF. In 2023, AirAsia successfully avoided emitting 130,000 tonnes of CO2 across its regional network by implementing over 20 operational efficiency initiatives. This reduction is equivalent to the environmental impact of planting more than 2 million trees. These measures also resulted in significant financial savings, including $40 million in fuel costs and over $388,000 in shadow carbon costs.

This partnership between AirAsia and Airbus represents a significant step towards a more sustainable future for aviation in Southeast Asia. By focusing on innovative technologies, operational efficiency, and collaborative research, the partnership aims to pave the way for a greener and more responsible aviation industry in the region.

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