S’pore’s air hub status not at risk with green surcharge: lata chief

Plans to charge a levy on passengers departing Singapore so airlines here use greener jet fuel will not put the Republic's status as a global aviation hub at risk, said International Air Transport Association (lata) chief Willie Walsh.

- Kok Yufeng

That is because all major air hubs and airlines around the world are pursuing a similar agenda, and passengers will ultimately bear the cost of the aviation industry's transition to net-zero emissions by 2050, he told a press conference on Feb 19.

Rounding up the second Changi Aviation Summit, which brought together more than 400 senior government officials and industry leaders, Mr Walsh said the only credible option available for aviation to decarbonise by 2050 is to pursue the widespread use of sustainable fuels.

Yet, such fuels are three to five times more expensive than conventional fuel, and this will be reflected in airfares, whether through a levy or airlines raising ticket prices.

"The cost of travel will increase... It just cannot be avoided," said Mr Walsh, who heads the industry body representing 320 airlines, adding that carriers will pass on the extra costs incurred given the thin margins.

Singapore's new green jet fuel levy will be imposed on travellers from 2026, as flights departing the city-state will have to use sustainable aviation fuel from that year.

The national target is for sustainable fuel to form 1 per cent of all jet fuel used at Changi and Seletar airports in 2026. The eventual goal is to reach 3 per cent to 5 per cent by 2030.

The money collected from the levy will go towards the bulk purchase of greener jet fuel that airlines need to meet these aims.