Sustainability In The Air

Is demand management in aviation a myth or reality?

13 snips
Mar 6, 2025
Join Patrick Edmond, Managing Director of Altair Advisory and expert in sustainable aviation fuel, along with moderator Dirk Singer of SimpliFlying in a lively debate on aviation demand management. They explore the tension between airline growth and climate goals, dissect the 'guilt premium' in sustainable fuel adoption, and discuss the frequent flyer problem as a key contributor to emissions. Their insights also touch on the relationship between ticket pricing and travel behavior, emphasizing the urgent need for systemic changes to balance profitability with sustainability in air travel.
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INSIGHT

Limited Decarbonization Impact

  • Demand management has limited impact in decarbonization roadmaps, only 2-16% by 2050.
  • Demand is expected to double by 2050, with most planes using current technology.
INSIGHT

SAF Price Parity

  • Some startups claim SAF price parity by selling byproducts to subsidize the fuel.
  • Cultivate, a Georgian company, uses hemp and sells hemp bricks to achieve this.
ANECDOTE

Airline SAF Negotiations

  • Airlines negotiate SAF prices with U.S. and European providers, aiming for parity with jet fuel.
  • They seek prices comparable to jet fuel, not the current 2X, 3X, or 5X premiums.
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