The airline industry, which plays an essential role in delivering value to the economy, has a significant opportunity to help mitigate the impacts of climate change.
Collaboration across the value chain, as well as with regulators and governments, is imperative to drive progress in the industry on operational decisions, fuel purchasing and forward commitments that drive innovation. Atlas is committed to playing a leading role in this effort, and our teams are involved in a number of key initiatives:
Sustainable aviation fuel (SAF) represents a significant lever for decarbonization of the industry. Our dedicated Fuel Procurement team is actively engaged in discussions to develop contracts with fuel providers and other fuel partners to support our customers’ growing interest in the use of SAF. In 2023, we announced a partnership with our customer Inditex to incorporate 5% SAF (produced by Repsol) for all flights departing from Zaragoza Airport in Spain. Atlas is the first cargo airline to use SAF regularly on cargo flights in Spain.
Also in 2023, we launched the Sustainable Engine Alliance with key partners Kuehne+Nagel and SR Technics Group. Through the Alliance, we pledge to manage global engine supply chains more sustainably and set new industry standards for responsible sourcing and aircraft engine transportation. The initiative is expected to reduce engine supply chain related Scope 3 emissions in line with the Science Based Targets Initiative (SBTi) ahead of the 2050 IATA sustainability targets.
As a result of the Alliance, Aviation Week Network Magazine honored the team with a Laureate award under the Maintenance, Repair, Overhaul (MRO) category. Read more on Tailwinds.
Atlas is committed to being part of the solution to accelerate SAF use. However, we recognize that this effort requires collaboration and cannot be achieved in isolation. Governments have an important role to play in setting clear standards that will support SAF generation and adoption, making it scalable for widespread commercial use.
Atlas works in partnership across the aviation sector to advocate for policies that will help us meet our climate-related goals. Our Company is an active member of the Commercial Aviation Alternative Fuels Institute (CAAFI), a public-private partnership with the U.S. Federal Aviation Administration (FAA) that aims to increase the production of SAF.
Our advocacy for SAF includes seeking tax credits, grants and loan guarantees at the federal and state levels of government to increase production. These efforts focus on tax incentives (blenders tax credit) and other policies to make SAF commercially viable and give producers more market certainty. Atlas has also partnered with other industry leaders to advocate for and secure grants for feasibility studies in key regions, such as Alaska and Kentucky.
In Kentucky, where we have a global operations center near the Cincinnati/Northern Kentucky International Airport (the seventh-largest cargo airport in North America), Atlas joined with key partners, airlines and airports to form the Kentucky Sustainable Aviation Fuel Coalition. The coalition’s goal is to encourage the state to lead SAF production by leveraging the state’s reputation as an aviation powerhouse and leader in innovation to spur investment. Through the coalition, we are collaborating with state organizations to identify opportunities to further SAF production, which could include investing in technologies to convert municipal waste and hydrogen into new fuel alternatives.