Airlines. 2024-03 by Redactive Media Group

“In 2022, there were just 43 widebody aircraft for 1.4 billion people in what is the world’s third-largest aviation market!”

Campbell Wilson, CEO & MD, Air India p12-15

CEO interviews Austrian, Air India | ICCS Currency clearing made easier | IATA Opinion Globalising the SAF market | Artiﬁcial intelligence Further data is vital | Sustainability Cabin waste audits

PRATT & WHITNEY GTF™ MRO NETWORK

As the GTF fleet grows, we’re expanding MRO capacity around the world – in our shops and across a network of industry leaders. With 13 active locations worldwide and another six expected by 2025, we’re sharing best practices, optimizing workscopes and driving innovation throughout the network – with automation, digital tools and advanced inspections and repairs. Together, we’re redefining what’s possible to support our customers. LEARN MORE AT PRATTWHITNEY.COM/MRO-MAP

Comment

5 Willie Walsh, Director General Globalization of SAF is vital

Digest

6 IATA and industry update Outlook for the sector accelerates, Tourism tax not beneﬁcial to New Zealand aviation, Diversity and Inclusion awards winners

10 Data: In numbers Global performance for June

CEO Interviews

12 Carrying the dreams of a nation Campbell Wilson, CEO of Air India on how the airline and its LCC partners are transforming to match the nation’s pace of ambition and development

24 Co-operation is the key Annette Mann, CEO at Austrian Airlines, explains that the airline group is going from strength to strength, with diversity playing a big part in that

Features

16 Aviation’s sustainability needs

IEnVA must have greater environmental, social and governance recognition to help those who require it

22 New dimension to currency clearing Payment tool is essential as aviation sector networks increase connectivity across the globe

37 Data at the heart of AI success

Using all information available to artiﬁcial intelligence will improve a multitude of issues in airline industry

40 Expanding cabin waste audits

Recent successful trials have increased plans for standardization

42 Explainer

The challenge of developing sustainable aviation fuel eﬀorts

44 Meeting decarbonization targets Toshiyuki Onuma, Deputy Director General, Japan Civil Aviation Bureau

46 Spain set to be major SAF supplier Nation driving sustainability plans

IATA Corporate Communications

Vice President Anthony Concil

Creative Direction Richard McCausland

Assistant Director Chris Goater www.iata.org

Editorial

Editor Graham Newton

Head of content production DeeDee Doke

Assistant editor Patrick Appleton

Production editor Vanessa Townsend

Senior designer Joe McAllister

Picture editor Jessica Marsh

Production

Production manager Jane Easterman

+44 (0)20 7880 6248

jane.easterman@redactive.co.uk

Publishing director Aaron Nicholls

Business development manager +44 (0)20 7324 2763 airlines@redactive.co.uk

Follow IATA on X, formerly known as Twitter @IATA and join our LinkedIn group Airlines. ISSN 1360-6387

The opinions expressed in this publication are those of the individual authors or advertisers and do not necessarily reﬂect those of Redactive, IATA or its members. The mention of speciﬁc companies or products in articles or advertisements contained herein does not imply that they are endorsed or recommended by IATA or Redactive. All of this publication’s content is subject to copyright, design rights and trademarks of Airlines. and third parties.

content ideas

Globalizing the SAF market

Sustainable aviation fuels (SAF) are expected to account for up to 65% of the total carbon mitigation needed to achieve net zero carbon emissions in air transportation by 2050. It is essential that every drop is accounted for in a globalized market.

IATA has taken up the challenge and is setting up a SAF Registry for launch in early 2025. It will be neutral with respect to types of SAF, have safeguards against double counting, and allow participation on a cost-recovery basis to avoid adding unnecessary cost barriers to the SAF ramp-up.

The Registry is being developed in consultation with airlines, government authorities, international organizations, OEMs, fuel producers and suppliers, airports, and corporate travel management companies. They all have a stake in this important project.

The aim is to authoritatively document emissions reductions from SAF, wherever they are produced or uploaded with maximum accuracy and

at minimum cost and bureaucratic burden. This is important because many parties need this information, not least of which are governments, airlines, and their customers.

And unlike existing SAF book and claim initiatives, which focus on voluntary action alone, the IATA SAF Registry will address voluntary and regulatory compliance, where state authorities can validate or accept SAF claims.

As we prepare to launch in early 2025, there will be plenty of opportunities to learn more about the project, including at the World Sustainability Symposium (Miami 24-25 September).

On blocked funds

The eﬃcient repatriation of airline revenues is guaranteed in bilateral agreements. Even more importantly, it is a pre-requisite for airlines—who operate on thin margins—to be able to provide economically critical connectivity. No business can operate long-term without access to rightfully earned revenues.

On the industry outlook

The airline industry is on the path to sustainable profits, but there is a big gap still to cover. A 5.7% return on invested capital is well below the cost of capital, which is over 9%. And earning just $6.14 per passenger is an indication of just how thin our profits are—barely enough for a coffee in many parts of the world.

On safety

IATA’s Operational Safety Audit (IOSA) makes a diﬀerence. And we are making it stronger. This year we will conduct 100 IOSA audits with a new risk-based model. Doing this adds an extra focus on pertinent safety risks unique to each audited operator.

On passenger rights

Willie Walsh

IATA Director General

EU 261 is not a global standard. And it should not become one via copy-paste regulatory osmosis. It is the epitome of bad regulation. Over two decades, poor drafting of the regulation has allowed courts around Europe to create a monster that has added billions to the cost of providing travel. But it has had no positive impact on delays or cancellations. EU 261 must be stopped, not propagated!

DIGEST

Industry outlook continues to improve

IATA announced strengthened proﬁtability projections for airlines in 2024 compared with its June and December 2023 forecasts. An aggregate return above the cost of capital, however, continues to elude the global airline industry.

Outlook highlights include:

• Net profits are expected to reach $30.5 billion in 2024 (3.1% net profit margin). That will be an improvement on 2023 net profits which are estimated to be $27.4 billion (3.0% net profit margin).

• Return on invested capital in 2024 is expected to be 5.7%, which is about 3.4 percentage points (ppt) below the average cost of capital.

• Operating proﬁts are expected to reach $59.9 billion in 2024, up

from an estimated $52.2 billion in 2023.

• Total revenues are expected to reach $996 billion (+9.7%) in 2024—a record high.

• Total expenses are expected to reach $936 billion (+9.4%) in 2024—a record high.

• Total travelers are expected to reach 4.96 billion in 2024—a record high.

• Total air cargo volumes are expected to reach 62 million tonnes in 2024.

“In a world of many and growing uncertainties, airlines continue to shore-up their proﬁtability. The expected aggregate net proﬁt of $30.5 billion in 2024 is a great achievement considering the recent

deep pandemic losses,” said Willie Walsh, IATA’s Director General. Walsh added that “ﬁve billion air travelers” are expected next year and said the need to ﬂy among people “has never been stronger”. He also commended the $8.3tn of global trade which is only made possible through the air cargo industry.

“Without a doubt, aviation is vital to the ambitions and prosperity of individuals and economies,” he said.

“Strengthening airline profitability and growing financial resilience is important. Profitability enables investments in products to meet the needs of our customers and in the sustainability solutions we will need to achieve net zero carbon emissions by 2050.”

New Zealand tourism levy will harm aviation sector

A government increase in the International Visitor Conservation and Tourism Levy (IVL) could hurt New Zealand’s tourism industry, IATA has said.

New Zealand’s aviation market currently lags behind major markets such as Australia, Canada, France, Spain, the UK, and the US. These markets have either recovered to pre-pandemic passenger levels or will achieve full recovery in 2024.

“It has been a double whammy for the New Zealand travel and tourism sector, starting with New Zealand Immigration announcing steep increases in visa fees, and now the increase in the IVL,” said Dr. Xie Xingquan, IATA’s Regional Vice President for North Asia and Asia-Paciﬁc (ad interim).

“These changes make travel to

SCHEDULE DATA EXCHANGE PROGRAM GATHERS PACE

IATA has said 40 airlines have signed an agreement to contribute their schedules data to the IATA Schedule Data Exchange Program. A further 40 are in the process of preparing to join. Work began in October 2023 with the ﬁrst release planned in March 2025.

“The early and strong support for the IATA Schedule Data Exchange Program bodes well. Coverage is growing with each new airline that comes on board. And we encourage all airlines—IATA members and non-members— to join this strategic industry eﬀort,” said Willie Walsh, IATA’s Director General.

The Schedule Data Exchange Program will

New Zealand more expensive and less attractive and could further delay the recovery to beyond 2026.”

Thailand scrapped plans for a tourism tax on air travelers in June to encourage tourist spending in other areas. During the public consultation process for the IVL, IATA had provided a submission urging that the IVL not be increased.

Dr. Xie added that New Zealand should not harm its own development, but rather look at ways “to improve the country's competitiveness as a destination” compared to other global markets.

He also noted the government did not indicate how the IVL funds will be allocated, and urged New Zealand to “consider allocating the funds collected to projects that support the decarbonization of aviation.”

PERFORMANCE IN NUMBERS

collect schedules, capacity, and minimum connecting time (MCT) data used in several IATA products and services supporting network development, revenue management, slot coordination and interline agreements.

IATA is not creating a commercial product aimed at replacing or competing with entities currently distributing schedule data. Participating airlines will have access to the data on a give-to-get principle.

The program is open to both IATA and non-IATA member airlines. Participating airlines will submit their data to IATA with the same format, frequency, and transmission method they currently use to distribute their schedules.

The data sharing principles and data release policy of the program are determined by an advisory group comprised of participating carriers.

Outlook Drivers

Proﬁtability is expected to strengthen in 2024 as revenues grow slightly faster than expenses (+9.7% vs. +9.4% respectively)

Revenue

Industry revenues are expected to reach an historic high of $996 billion in 2024

Passenger revenues are expected to reach $744 billion in 2024, up 15.2% from $646 billion in 2023. Revenue passenger kilometers (RPKs) growth is expected to be 11.6% year on year Cargo revenues are expected to fall to $120 billion in 2024 (from $138 billion in 2023). Despite the strength of demand, cargo yields are expected to fall 17.5% in 2024

Expenses

Industry expenses are expected to grow to $936 billion in 2024 (+9.4% on 2023)

Fuel is expected to average $113.8/ barrel (jet) in 2024 translating into a total fuel bill of $291 billion, accounting for 31% of all operating costs

Fleet

An inventory of 38.7 million ﬂights is expected to be available in 2024. The number of aircraft deliveries scheduled for 2024 is expected to be 11% less than expectations published recently

Positive July passenger figures despite IT strike challenges

IATA released data for July 2024 global passenger demand with the following highlights.

Total demand, measured in revenue passenger kilometers (RPK), was up 8.0% compared to July 2023. Total capacity, measured in available seat kilometers (ASK), was up 7.4% year-on-year.

The July load factor was 86.0% (+0.5ppt compared to July 2023 ).

There was no signiﬁcant negative demand impact from the CrowdStrike IT outage on 19 July.

International demand rose 10.1% compared to July 2023. Capacity was up 10.5% year-on-year and the

load factor fell to 85.9% (-0.3ppt compared to July 2023 ).

Domestic demand rose 4.8% compared to July 2023. Capacity was up 2.8% year-on-year and the load factor was 86.1% (+1.7ppt compared to July 2023 ).

“July was another positive month. In fact, passenger demand hit an all-time high for the industry and in all regions except Africa, despite signiﬁcant disruption caused by the CrowdStrike IT outage,” said Willie Walsh, IATA’s Director General.

“The winding down of the peak northern summer season is a reminder of how much people

7.4%

Increase in total capacity, measured in available seat kilometers (ASK)

depend on flying. As the mix of travelers shift from leisure to business, aviation’s many roles are evident—reuniting families, enabling exploration, and powering commerce. People need and want to fly. And they are doing that in great numbers. Load factors are at the practicable maximum. But persistent supply chain bottlenecks have made deploying the capacity to meet the need to travel more challenging. As much of the world returns from vacation, there is an urgent call for manufacturers and suppliers to resolve their supply chain issues so that air travel remains accessible and affordable to all those who rely on it,” said Walsh. All regions showed strong growth for international passenger markets in July 2024 compared to July 2023, with signs that many markets are returning to long-term growth trends after the post-pandemic bounce back. Domestic demand also increased in July, with solid growth resulting in all key markets, bar India, reaching all-time highs. Brazil once again expanded fastest, while Japan and Australia rebounded from the previous month’s negative growth.

FREIGHT CONTINUES TO EXPERIENCE SOLID DEMAND FIGURES

IATA released data for July 2024 global air cargo markets showing continuing strong annual growth in demand.

Total demand, measured in cargo tonne-kilometers (CTKs), rose by 13.6% compared to July 2023 levels (14.3% for international operations).

This is the eighth consecutive month of double-digit year-on-year growth, with overall levels reaching

heights not seen since the record peaks of 2021.

Capacity, measured in available cargo tonne-kilometers (ACTKs), increased by 8.3% compared to July 2023 ( 10.1% for international operations). This was largely related to the growth in international belly capacity, which rose 12.8% on the strength of passenger markets and balancing the 6.9% growth of

international freighter capacity. It should be noted that the increase in belly capacity is the lowest in 40 months whereas the growth in freighter capacity is the highest since an exceptional jump was recorded in January 2024.

"Air cargo demand hit record highs year-to-date in July with strong growth across all regions. The air cargo business continues to beneﬁt

from growth in global trade, booming e-commerce and capacity constraints on maritime shipping. With the peak season still to come, it is shaping to be a very strong year for air cargo. And airlines have proven adept at navigating political and economic uncertainties to ﬂexibly meet emerging demand trends,” said Willie Walsh, IATA’s Director General.

Diversity and Inclusion Award winners announced

IATA announced the winners of the 2024 edition of the IATA Diversity & Inclusion Awards, and also awarded a special commendation in the High Flyer category.

“The winners are true beacons of change, as diversity and inclusion entrenches itself as a strategic priority for the aviation industry,” said Yvonne Manzi Makolo, CEO of RwandAir and Chair of the IATA Board of Governors (2023-2024), who presented the awards.

The 2024 IATA Diversity & Inclusion Awards were presented during the World Air Transport Summit (WATS), which followed the 80th IATA Annual General Meeting in Dubai, United Arab Emirates.

Special Commendation for High Flyer: Hana Al Awahdi, Senior Vice President, Human Resources Business Partner, dnata

As the ﬁrst ground service provider to sign up to IATA’s 25by2025 initiative, under Al Awahdi’s leadership, dnata achieved 29% representation of women in leadership roles in dnata’s UAE operations in 2023.

Inspirational Role Model:

Kendra Kincade, CEO and Founder, Elevate Foundation

Under Kincade’s leadership, Elevate

Foundation developed a number of programs to help advance gender balance in the industry, including the Canadian Cross-Country Tour mentorship program. The Elevate Aviation Learning Center also oﬀers aviation awareness and training with many programs, including a weeklong immersive ‘Aviation Career Exploration’ experience for youth aged 11-18.

High Flyer: Mafunase Ngosa Malenga, Founder and Managing Director, Southern Africa Institute of Aviation Science and Technology Malenga’s institute has over 800 graduates, 80% of whom are women. This remarkable achievement reﬂects her unwavering commitment to providing opportunities for women in aviation.

Diversity & Inclusion Team: British Airways

The British Airways team launched “Inclusion starts with I” in September 2023, and the campaign has already proven successful as one of a number of initiatives being worked on to support the airline’s strategy of driving positive action, to ensure that it is both an inclusive and diverse organization.

Did they really say that?

“Asia-Pacific airlines are not getting everything they need to be able to add more capacity. All this is tied to supply chains, and taking that into account, [Asia-Pacific] airlines are fighting against the odds— they are doing a really remarkable job.”

AAPA Director General, Subhas Menon

“It is discouraging that the Irish Aviation Authority has questioned the appropriateness of environmental charges and the Dublin Airport Low Emissions Aircraft Discount incentive, which we introduced as a catalyst for lower noise and CO2 [carbon dioxide] emissions.”

Dublin Airport manager, DAA

“British aerospace management is an analogue system in a digital age, closer to the time that [Soviet cosmonaut] Yuri Gagarin ﬂew into space [in 1961] than today. That’s going to change under my watch. We can all enjoy quicker, quieter, cleaner ﬂights that are better for our people and better for our planet.”

UK Minister for Aviation, Mike Kane

The relative price of shipping by air over maritime cargo

Disruptions in ocean container shipping have brought about a sharp drop in air cargo rates over maritime shipping in the ﬁrst quarter of 2024, radically increasing air cargo’s competitiveness. Source: IATA

$996,000,

3.2%

The global real GDP growth rate will likely remain stable at 3.2% in 2024 and 2025. Inﬂation is easing but could still exceed the 2% target set by central banks

Average crude oil prices should stay around $85-90 per barrel in 2024 with a crack spread central estimate of $26.

$2.4 billion

Sustainable aviation fuels will add $2.4 billion to this year’s fuel bill. Costs related to the Carbon Oﬀsetting and Reduction Scheme for International Aviation (CORSIA) are estimated at $600 million.

Regional and global yearly forecast growth rates in total passenger numbers, %

There are expected to be 22,056 unique city pairs in 2024

Regional and global GDP and trips per capita , % growth over forecast period, 2023-2043

GDP in the Asia Paciﬁc region will grow by 65% over the coming 20 years, and trips per capita should almost triple. As a result, nearly half of global passenger traﬃ c will originate or depart from the region in 2043, as opposed to 34.1% in 2023.

Carrying the dreams of a nation

Campbell Wilson, CEO & MD, Air India, says the airline’s transformation is indicative of India’s ambition and development.

WORDS: GRAHAM NEWTON

Approaching almost a century of operation, Air India has overseen a transformation like no other.

From recruitment to data systems to reﬁtting legacy aircraft, the ﬂag carrier is instilling both national pride and an overarching aspiration to be the best it can be.

How is the transformation program progressing and what do you consider to be the most important elements?

Air India is a 92-year-old airline if you draw the timeline from JRD Tata’s first flight. Over the years it has been in both private and state hands and enjoyed periods as one of the best airlines in the world as well as others in which it suffered from underinvestment.

In recent years, as India increasingly focused on infrastructure-assisted modernization, it was decided that privatizing Air India would catalyze a stronger aviation ecosystem and the economic and social growth that it enables, leading to the airline returning to private ownership, and to the Tata Sons Group, in 2022.

On privatization, the airline had 30 aircraft on the ground for want of spare parts, an average employee age of 54 against a retirement age of 58, and almost universally obsolete or manual systems and processes.

Among many other things, the on-ground facilities, the physical product on aircraft and the performance culture had not kept pace with aviation’s evolution. Over the last two years we have invested a lot of time and money to ﬁx these issues and lay the platform for growth. We’ve now reactivated or taken delivery of more than 70 new aircraft, part of a ﬁrm order for 470 new aircraft made last year, which are arriving at the rate of one every six days.

We’ve recruited 9,000 new people, bringing the average age down to 35, and migrated almost 100 IT systems to state-of-the-art replacements. We’ve consolidated more than 60 facilities that were dispersed across India into a single campus, established South Asia’s largest training facility that will ultimately house more than 20 simulators, and should inaugurate a greenﬁeld base maintenance facility by the end of 2025.

We’ve just started the reﬁt of nearly 100 legacy aircraft with completely new interiors, rebranded both Air India and our low-cost carrier (LCC) subsidiary Air India Express, and are in the ﬁnal stages of executing the merger of these two airlines with Vistara (a JV between Tata Sons and Singapore Airlines) and the former Air Asia India (now a fully-owned subsidiary of Air India).

Ultimately, we are determined to achieve our vision of transforming Air India into a world class, global airline with an Indian heart.

How will you incorporate Vistara and Air India Express into the strategy?

Vistara, which has been operating for nine years, has a great product and reputation as well as modern processes and systems, and is helping to accelerate our transformation.

Air India nevertheless has a 90-year legacy, carries the nation’s name, and, despite its

“Air India has a 90-year legacy, and carries the nation’s name”

diﬃculties in recent decades, has a deep emotional attachment to millions that is priceless. So, even though the name may be Air India, there will continue to be large parts of Vistara in our DNA, product, and service just as there are already elements in our new branding.

With Air India ﬁlling the full-service space, operating both widebody and narrowbody aircraft across all geographies, Air India Express is the Group’s low-cost arm focusing on domestic and short-haul international routes.

As we execute the four-way integration into one full-service carrier and one LCC, we’re taking care to realize cost synergies, facilitate network eﬀects, and address the customer experience, while retaining ﬂexibility to deploy business models, people, and assets nimbly, which is important in a market like India.

How do you change an airline’s culture and bring staﬀ along on the transformation journey?

In a sense, we are on a mission to transform a national icon into what we hope will eventually shine as a national inspiration, and to create an Air India that is representative of the new India. We have hundreds of new aircraft, facilities, and cutting-edge technologies giving unparalleled opportunities for our people to develop professionally. Add to that thousands of new staﬀ, a new brand – including new crew uniforms designed by a couturier to Bollywood – and a widespread acceptance that the pre-privatization trajectory wasn’t sustainable.

In that context, it’s not been too diﬃcult to get Air Indians aligned behind the transformation. Our focus has been more on helping people understand the benchmarks we need to reach, and what is required to get there.

From a human resources perspective there are obviously some material changes needed to transition from a legacy, state-owned airline to a modern private sector one. These include the implementation of performance management processes, key performance indicators that carry rewards and consequences, advancement

Merging four airlines and multiple employee groups into a coherent whole has added to the complexity, but we’ve tried to be as logical, respectful and transparent throughout the change process. People have really risen to the occasion.

being based on talent not tenure, more systematic and impartial practices, and so on.

The concurrent merging of four airlines and multiple employee groups into a coherent whole has also added to the complexity. But we’ve tried to be as logical, respectful, empathetic, data-driven, and transparent as possible through the change process, and though change is not always easy, people have really risen to the occasion.

There is an incredible amount of interest and engagement in Air India’s transformation from the external community, with every day’s newspapers reminding that what we are pursuing is bigger than any of us.

It is initially a capital-intensive strategy with new ﬂeet. What are the factors that make you believe you will get a return on this investment? We are certainly investing a lot of money, but we are getting valuable assets that will last a long time. Getting 470 new aircraft sounds large, but consider that when the airline was privatized in 2022, there were just 43 widebody aircraft in the entire country—all of which were Air India’s. That’s 43 widebody aircraft for 1.4 billion people in what is the world’s third-largest aviation market! Clearly, there was huge potential for growth, and that’s just in the widebody space.

When you also factor in the young and aspirational population, a rapidly growing middle class, the 6%–7% economic growth rate, the relatively low penetration of air travel, and the sheer physical size of India, there is huge upside potential. Add to that a massive global diaspora and India’s excellent geography for intra and inter-continental connectivity.

India is like nowhere else in the world, and our investment should be seen in this context.

What are the major challenges in the Indian market in terms of regulation?

The government has been very supportive of aviation as a catalyst for social and economic development, and a vehicle for connecting the

regions of India as well as its diaspora. The massive multiplier effect from more Indian travelers hubbing at Indian airports, and from Indian hubs serving international traffic flows, is also well understood.

Aside from the huge aircraft orders placed by Indian airlines, there is now a lot of public and private investment in aviation infrastructure. The number of airports has doubled in less than a decade and is set to nearly double again in the next ten years. New greenﬁeld airports are being built in Delhi and Mumbai, and others like Bengaluru are undergoing massive expansion. Special economic zones to aid aircraft leasing have been established.

There is more to be done with respect to further improving the customer experience at the border and during transfers, and greater use of digital technology to simplify and expedite journeys.

Is sustainability a luxury for you at the moment?

Sustainability is as important to us as it is to any other airline, and though we have many balls in the air, this is certainly one of them.

Air India subscribes to IATA’s net zero by 2050 goal, and India is part of ICAO’s Carbon Oﬀsetting Reduction Scheme for International Aviation with a clear policy for the adoption of sustainable aviation fuels (SAF).Our ﬂeet renewal, as well as plan to establish more non-stop city-pairs, will result in less emissive itineraries, and we have signed a memorandum

9, 000

The carrier has also recruited 9,000 new employees

of understanding with India’s Council of Scientiﬁc and Industrial Research and the Indian Institute of Petroleum to collaborate on the research, development and deployment of SAF, for which India has signiﬁcant production potential. There is no magic bullet, but we are committed to doing our part.

What are the prospects for SAF supply in India?

With SAF, the issue is not demand. As has been stated by many others, airlines consume 100% of what is currently produced, and it is broadly accepted that SAF will play an important role in achieving the industry’s commitment to net zero carbon emissions by 2050. SAF must be provided at scale, and it must be provided reliably. In India, there is a mandate for 1% SAF use in 2027, rising to 2% in 2028. These are small steps, but they are crucial ones for developing the SAF ecosystem in the country. SAF may also oﬀer farmers a means to put more land into productive use, as some feedstocks are more suitable for marginal areas. I think SAF is an interesting opportunity for India and has signiﬁcant potential.

You have a high percentage of female pilots compared with the global average. What lessons can be learned from your approach?

Over 15% of pilots in the Air India Group are female, well above the industry average. Although I think Air India’s longstanding acceptance of diversity—in all forms—has played a part, there are clearly societal factors that contribute too.

The fact remains that 15% is still far too low, so I’m delighted that we are seeing much more gender balance in our trainee pilot cohorts. About 51% of our total employees are female, and we’d like to get close to that number across all aspects of the business. Air India is committed to being as diverse a workforce as possible, as that facilitates richer and more robust conversations and invariably leads to better results.

IATA’s Environmental Assessment (IEnvA) program has been busily expanding its reach in recent years. Since the pandemic, the number of organizations certiﬁed has grown more than 25% annually.

Quintin Holder, IATA’s Senior Manager, Sustainability Standards and Audits, says the reason behind this growth is the impressive results airlines are generating in reducing noise, emissions, waste, and pollution. “Yes, IEnvA is a certiﬁcation and audit program about environmental awareness but having certiﬁed airlines is not our primary goal. We want to improve environmental performance. IEnvA is functional and provides practical ways forward.”

This practicality led to the expansion of IEnvA to other aviation stakeholders, including airports, cargo handlers, and ground handlers. This not only allowed an alignment of initiatives at particular locations but also saw an uptake among airline partners even where airlines are not participating.

“It has led to a virtuous circle where stakeholders are pressuring each other to make environmental improvements and IEnvA is the way to achieve that,” says Holder.

Moving to sustainability

Despite this robust environmental platform, the world has moved on to and now talks in terms of sustainability. This encompasses a number of elements beyond environmental

Aviation’s sustainability needs

Designed to help aviation organisations improve efficiency on sustainability, IEnvA tool needs greater ESG recognition, as Graham Newton reports

responsibility, which are typically encapsulated in Environment, Social, and Governance (ESG) space.

Work has therefore been ongoing to have IEnvA recognized by ESG rating companies.

“Nine out of 12 now accept IEnvA as being ISO 14001 equivalent or better,” says Holder. “That is a crucial development as it means certified organizations don’t need to do ISO audits as well. And it also satisfies many financial institutions, improving organizations’ access to green financing.”

But this is just the beginning. IEnvA is being built out to include three new sets of standards and guidance, using industry-speciﬁc and external best practices.

First up is sustainable procurement. The aim is to get interested parties trialing the initiative later this year with a rollout in early 2025. Procurement is a complicated process involving myriad players, but organizations need to know that all the goods and services they procure do not involve an unnecessary environmental impact or related sustainability issues.

“For aviation, this won’t happen overnight because it is a huge area,” says Holder. “But that also makes it the correct next step. We will put globally accepted standards in place to serve as a baseline. It will simplify the procurement process and enable airlines to identify the right partners based on their unique situation, location and stakeholders.”

Second, IATA is working on standardizing some key performance indicators for sustainability. Again, sustainability is a multi-faceted term that can cover multiple concepts, all of which may be interpreted diﬀerently. It will be important to agree on and then measure and monitor the key components that will ensure meaningful sustainability tracking and progress.

The third area—and arguably the most complicated of all—is people. Social responsibility has no international standard like ISO 14001, so IATA is studying how an extension of IEnvA can incorporate

We want to improve environmental performance. IEnvA is functional and provides practical ways forward”

Quintin Holder, IATA’s Senior Manager Sustainability Standards and Audits

sustainability from a human resources perspective. As a global association, IATA has an array of ideas and cultures to consider but is intent on providing baseline standards by the end of 2025.

How it will work

Holder accepts that IEnvA has a lot going on, but he stresses that organizations seeking certiﬁcation will not be asked to undergo multiple audits or dedicate more resources than is already the case.

“We take a modular approach,” he explains. “Not all organizations will want to include every module in their certiﬁcation, so they can pick and choose. It won’t be mandatory to do the full suite and it will still be one integrated audit. Certiﬁcation lasts two years, so an organization can simply ask for their next audit to include environmental awareness and sustainable procurement, for example. We will work to ensure we have a pool of auditors to carry out whatever combination of modules an airline asks for.”

Crucially, this will enable organizations to take a strategic approach to their sustainability initiatives and plan out their improvements in key areas, gaining certiﬁcation when they deem it appropriate. Moreover, IATA will continue to provide and improve the tools and training that highlight best practice and allow organizations to gain their IEnvA certiﬁcation.

“This really is a community,” Holder concludes. “We listened to what our members wanted. We involved other stakeholders and now we’re moving to encompass broader sustainability, sharing best practice as we go. For us, this is not about certiﬁcation. It is practical help on sustainability no matter the resources at your disposal.”

Find Out More

Hover your device over this QR code to get more info: iata.org/ en/services/certiﬁcation/ienva/

UNLOCKING THE REAL VALUE OF DATALINK THROUGH IRIS

Satellite technology plays a signiﬁcant role in boosting your bottom line. The Iris datalink is a prime example of an important development

In the vast expanse of space, cutting-edge satellite technology is revolutionizing the aviation industry by enhancing connectivity to the cockpit. This pivotal advancement is not only propelling the modernization of Air Traffic Management (ATM) but is also unlocking substantial benefits for airlines. Crucially, this technology is already in use with easyJet, with more airlines in the process of onboarding, offering reductions in fuel usage (and subsequent CO2 emissions) through more efficient operation of the aircraft.

Iris and the modernization of air traﬃc management

The secure satellite datalink provided by Iris delivers high-speed communications for real-time interaction, enhancing the way aircraft communicate with air traffic controllers. This system supports the sharing of more detailed information from the flight deck to the ground, including 4D trajectory data, which allows for the precise and efficient management of airspace. By enabling aircraft to fly the most direct routes and maintain optimum trajectories, Iris significantly reduces the need for longer flight paths and ‘step-down approaches’ that involve multiple adjustments in thrust, pitch, and altitude, thereby saving time, fuel and CO2.

The Iris datalink, a pioneering space-based technology, has been created by satellite communications company Viasat and funded by the European Space Agency

(ESA). The European Satellite Services Provider (ESSP) manages the service, which has been officially introduced into operational use with easyJet in January 2024. Iris has already improved more than 3,000 easyJet flights by offering increased datalink capacity getting one step closer to i4D/EPP flight optimization – easyJet’s Chief Operating Officer, Captain David Morgan explains: “The Iris programme will play a pivotal role in providing the industry with a blueprint for a Single European Sky. We’ve long been campaigning for airspace reform across Europe so taking advantage of this technology is the next natural step in accomplishing this goal. We’ve had three aircraft operating the Iris system since the

“The [Iris] system is working well and meeting all requirements.”

start of 2024 and hope to bring more online later this year. The focus so far has been on validating the performance of the system and ensuring it meets the requirements for ATN communications. The system is working well and meeting all requirements”. Morgan continues: “We took over 1.5 million minutes of ATC En-Route delay in 2023. ATC modernization is required within Europe and enhanced datalink is key to enabling this. There are numerous opportunities to support our On Time Performance with greater connectivity which we’re assessing as part of the program. A common theme amongst these is greater data availability for our crews and increased communication capabilities between our

crews and our Integrated Control Centre. Iris has enabled these aircraft to operate even more eﬃciently, achieving fuel burn improvements through route optimization and enabling our pilots to map out and pick the most eﬃcient, direct routes.”

Additionally, Iris helps alleviate the growing pressure on aviation’s groundbased VHF Datalink, the traditional system used for ATM and airline control center communications. As this infrastructure becomes increasingly strained and reaches its capacity limits, Iris oﬀers a complementary and robust solution that could be crucial for airlines aiming to expand their operations without being hindered by existing communication limitations.

“[Airspace modernization] is critical to reducing emissions in the short term as new zero-carbon emission technologies and alternative fuels continue to mature.”

Charlotte Neyret, CEO of ESSP, states, “The Iris service adheres fully to ICAO standards and has been meticulously designed and developed to ensure it is safe and secure. Currently, 19 ANSPs are participating in Iris pre-commercial ﬂights, and 27 European ANSPs have expressed a strong interest and need for the service. If

an ANSP wants to join the Iris service it is very easy, just have a look on the Iris website: https://satcom-dls-support. essp-sas.eu and we will be so happy to have you onboard the Iris service”.

The adoption of Iris in Europe is progressing smoothly. The European Satellite Services Provider (ESSP) has

A new dimension to currency clearing

is continuing to work with its various banking partners to ensure all ICCS members enjoy the best possible exchange rates.

But there are two other major developments.

The ﬁrst is the move to embrace other stakeholders in the aviation ecosystem. General sales and service agents, travel agents, and freight forwarders are among those that have similar concerns regarding the repatriation of funds and so would beneﬁt from the ICCS.

The second advance is encompassing credit

With the ICCS, cash ﬂow uncertainty is greatly reduced. Airlines know what revenues they are getting and when and are aware of any issues well ahead of time”

Muhammad Albakri, IATA’s SVP for Financial Settlement and Distribution Services

$850 MILLION

Following extensive work with the Central Bank of Nigeria, almost $850 million was cleared by that financial organisation

card sales. Essentially, airlines will be able to tell an acquirer to send their money to the ICCS, saving on poor conversion rates and lengthy delays in releasing the funds.

“The service is available in 44 countries, and we are already working with American Express,” says Albakri. “We are also working with speciﬁc countries, such as India and the Philippines. The trend is clear and credit cards are increasingly important, so the more we can do in this area, the more money we can save for ICCS participants.”

Overcoming ICCS challenges

Repatriating money from foreign sales is a complicated process, however, especially as every Central Bank has a diﬀerent objective and diﬀerent rules. Some simply can’t accommodate a system like the ICCS within their existing framework. Others are responding to volatile geopolitical conditions and making it harder for money to cross their borders.

Occasionally, funds can even be blocked. Fortunately, the amount of blocked funds dropped in the ﬁrst half of 2024 to $1.68 billion, following extensive work with the Central Bank of Nigeria, which cleared the best part of $850 million.

Blocked funds in Bangladesh and Pakistan— amounting to $620 million—remain a concern, however. In Bangladesh, the solution is in the hands of the Central Bank, which must prioritize aviation’s access to foreign exchange in line with international treaty obligations. In Pakistan, there needs to be eﬃcient alternatives to the long, complicated process of obtaining audit and tax exemption certiﬁcates.

“The ICCS continues to grow, which is a testament to its success,” concludes Albakri. “And we will continue to enhance it, adding value to all participants. All the indicators suggest the services provided by the ICCS will become even more important in the coming years.”

Diversity among the airlines can be done in many different ways, as Austrian Airlines CEO Annette Mann is finding out. And as many different challenges arise, understanding the complex relationships within the business is also key to achieving success across the Lufthansa Group network.

What do you hope to achieve at Austrian while you are CEO?

I started as CEO in March 2022 and the first thing was to build back the basics and get the airline into a solid financial state after the pandemic. Austrian was heavily affected during COVID and basically spent three months on the ground. It only survived due to state aid. Going forward, we need to be competitive and future-fit. That means being financially healthy, which in turn means being operationally healthy, as this is the crucial base for customer satisfaction. The aim now is to continue growing, continue investment in our long-haul fleet and then also renew our short-haul fleet.

But our plans to make customers happy are not just about hardware, such as aircraft and lounges. In the next two-to-three years, we will

Annette Mann, CEO of Austrian Airlines, tells Graham Newton that working closely within the Lufthansa Group and with other aviation stakeholders is vital to a sustainable future.

Cooperation is the key to being future-fit

also put a lot of eﬀort into hospitality and customer service. Aviation is a service industry, and we must get our service right because that is what the customer values and that is what will make us future-ﬁt.

How closely do you collaborate in the Lufthansa Group?

The relationship with the Lufthansa Group is extremely important. Austrian has 68 aircraft

Aviation is a service industry, and we must get our service right because that is what the customer values and that is what will make us future-ﬁt.

Annette Mann, CEO of Austrian Airlines

and more than 6,000 people and so we would be too small on our own and need that group support for a sustainable future.

But we do retain our independence even though we work closely together. As an example, we have our own commercial team but, of course, it makes sense to align our networks. So, with a popular destination—New York, for example—we stagger departure times between hubs, so the customer has a choice of

when to ﬂy. For other destinations, we may avoid duplication whenever useful.

The point is that it must make sense to the customer. A lot of passengers use more than one Lufthansa Group airline for a trip because of that ﬂexibility.

There are also economies of scale when it comes to procurement and many other corporate functions. We are stronger together than Austrian could ever be on its own.

What are the biggest challenges in sustainability?

Our focus is on CO2 reduction in our operations. There are basically three levers to our strategy. First, we can buy new aircraft. Austrian has a higher-than-average fleet age, which means our fleet renewal program will be important to our sustainability efforts. By 2030, we aim to renew half of our fleet.

Second, we have various operational initiatives with specific targets, and we are making good progress on these. We are already certified in certain areas and are pursuing other certifications that will verify the work we are doing.

Third, we are part of the group projects and goals in sustainable aviation fuels (SAF). We are trying to understand this emerging industry and its global market. An important element is making the work known to customers and especially our corporate customers so they can use the information for their own CO2 reduction programs.

Are you happy with the European mandates on sustainable aviation fuels and will mandates or incentives work best in this area?

The Lufthansa Group has been a frontrunner in supporting SAF certiﬁcation and production but if you look at what is happening in the United States—where they have incentives rather than mandates—it has overtaken anything that Europe is doing. So, clearly, incentives seem to work better than mandates. And then it is about how you implement

mandates. They can be a good instrument but in Europe it will become a huge disadvantage for carrying transit traffic. Customers will be able to use Istanbul or the Middle Eastern hubs. Mandates should be done so that the transfer hub doesn’t affect the price the airline can offer the passenger.

What other European regulations need work? Well, it is very hard to understand what is happening with the Single European Sky (SES). According to their ﬁgures, SES will provide up to 10% CO2 reduction. Yet decades after we started the discussion, we are still taking baby steps. Why aren’t we grabbing this 10% that is apparently available? Especially, when you consider that there is not enough SAF production.

When it comes to EU261, customers absolutely should have rights. That is a valuable and vital tool. But there must be the proper perspective. First, the amount airlines earn per ticket and the compensation they must pay in the case of delays and cancellations bear no relation to each other. Often, the compensation is higher than the full ticket price.

Second, quite often the airline isn’t to blame for the delay or cancellation. It could be a staﬀ shortage at the air navigation service provider (ANSP) or airport that has caused the

problem. But it is the airline that must pay without any means of getting the money back from the other players. We face the customer in a competitive market and yet other players are monopolies. Simply, we must rethink EU261.

Is air traﬃc management in Europe a problem for your operations and how can we improve it?

In Austria, we are really happy with our national air traﬃc control. Austrian has a strong relationship with the ANSP and the airport. We plan the European summer and overall capacity together to be as eﬃcient as possible.

But we need to use that model on a larger scale. It is easily achievable. We need transparent, honest talks about demand and capacity. We know from experience that it can signiﬁcantly improve performance.

Why is diversity important?

Diversity is only partially about gender. We must remember that it is also about a person’s background, culture, or age. In fact, there are many types of diversity, and all are important and relevant. We are a global industry with diverse customers, and we can only provide a great service if we understand this diversity. The world is becoming more complex and volatile, so we need more sophisticated and creative answers to the challenges. Only diverse teams can provide the innovative solutions we need.

Has your journey to the CEO position been diﬃcult and were role models important to your career?

I didn’t feel disadvantaged at any point in my ﬁrst ten years in the industry and since then I actually feel I’ve been well supported. So, personally, I have had a good experience and good opportunities to grow.

As a CEO, I try to be a role model, but this is not really about being female. It is part of the job. I think it is important to be ﬂexible though, especially when it comes to women having

An important element is making the work known to customers and especially our corporate customers so they can use the information for their own CO2 reduction programs.

Annette Mann, CEO of Austrian Airlines

families. We must work harder to make a career possible even if a woman—or a man—wants to spend time with their family. One successful tool we have at Austrian is shared leadership, which is two people sharing a role. We have seven of these shared leaderships. About half are woman/man, so it is not just woman/ woman. Men also want to spend time with their family, and they should be able to do that.

One of the shared leadership positions directly reports to me. These two people work well together and combine their strengths and that helps me to reach quicker and better decisions. It is a big plus.

Are there any industry trends or challenges that are not getting the attention they deserve, and which could signiﬁcantly impact the industry?

The industry is still struggling with legacy systems and problems in the supply chain.

But in Europe if an airline wants to remain a global player, then they have to think in terms of strategic long-term partnerships. This is an area where we can always make improvements. This is not just partnerships with other airlines but with all the players in the aviation ecosystem, such as ground services, ANSPs, and airports.

European airlines must think strategically because otherwise we will have a hard time competing on the world stage. US, Middle Eastern, and Asian carriers are strong and getting stronger. In Europe, we need more joint strategic ecosystem policies so airlines can ﬁnd ways to better serve the customer.

If you could change one thing at Austrian immediately, what would it be and why?

I wish I had an integrated dashboard that has all relevant data about the customer in one place. We have lots of data and great analyses, but it is still not available in real-time or in an easily visible, digestible format. I would like to know what the customer thought of our service today and how we could do better tomorrow.

iata.org/turbulence-aware

RISE: A STEP CHANGE IN AIRCRAFT PROPULSION

CFM’s Revolutionary Innovation for Sustainable Engines (RISE) program will fundamentally alter the aviation landscape

ccording to Arjan Hegeman, Future of Flight Technologies Leader, GE Aerospace—one of the two partners involved in CFM alongside Safran Aircraft Engines—the RISE program involves multiple elements that will redeﬁne aircraft propulsion while also reducing carbon emissions.

“CFM is celebrating its 50th anniversary by looking to change the way that people ﬂy,” he says. “The CFM RISE program activity is moving from component-level evaluations to module-level tests. More than 250 tests have been completed, new

research partnerships formed, and the technologies continue to mature.”

Open Fan comes of age

One of the main pillars of the RISE program is the Open Fan engine architecture, which increases fan size and removes the engine casing. Weight and drag are reduced for greater propulsive eﬃciency results. The technology has moved a long way in recent years and one of the main problems— noise—has been overcome.

“Testing has taken place on combustor materials as well as how combustion impacts contrails, fuels, and emissions.”

“Noise is all to do with air flow,” Hegeman explains. “Thanks to supercomputing, we now understand in detail what happens around the blades. We can truly tackle turbulence in air flow, which is how we can improve acoustics and efficiency.”

Investing in supercomputing

GE Aerospace—part owner of CFM—and the US Department of Energy’s Oak Ridge National Laboratory have reached a new Cooperative Research and Development Agreement (CRADA) on supercomputing, expanding the company’s capabilities to design such next-generation aircraft engine technologies as Open Fan.

GE Aerospace and Oak Ridge will collaborate to develop new, state-of-theart computational modeling and simulation capabilities. Oak Ridge’s expertise will help GE Aerospace better manage large simulations, more eﬃciently extract information, incorporate cutting-edge artiﬁcial intelligence (AI) tools to improve understanding of results, and streamline the

process to visualize the physics.

Oak Ridge National Laboratory is home to Frontier, the world’s fastest supercomputer, capable of crunching data at exascale speed, or more than a quintillion calculations per second. It is also renowned for its computing expertise.

“Supercomputing and access to Frontier is changing the way we design jet engines, allowing us to solve previously impossible problems. We’re now able to digitally ﬂy components of an Open Fan at full-scale in a simulated environment before the hardware is built,” says Mohamed Ali, SVP of Engineering for GE Aerospace.

“Our expanded research collaboration through a new

cooperative agreement with Oak Ridge National Laboratory will accelerate our engine design and testing, building conﬁdence that Open Fan architecture is the most promising engine technology to help the aviation industry meet its net zero ambitions,” Ali added.

GE Aerospace’s use of supercomputing power and software tools are helping engineers understand Open Fan aerodynamic and acoustic physics in new ways. For example, Frontier unlocks the ability to better evaluate new engine technologies at ﬂight scale in the design phase. As a result, GE Aerospace can improve test hardware designs and better optimize engine performance and airframe integration.

Testing on Open Fan is ongoing and maturing toward a level where a prototype engine is tested in ﬂight conditions. More than 200 hours of wind tunnel testing have been completed at the French Onera Aerospace Lab using a 1:5 scale model of an Open Fan, including a version of the model mounted on a demonstrator plane wing section for testing with Airbus.

A high-speed, low-pressure turbine (LPT) test campaign with advanced turbine blades has also been run and a second highpressure turbine (HPT) blade and nozzle test campaign has started.

Once all the technology is proven in terms of safety, durability, and performance through ground and ﬂight tests, a new engine product could be launched. Entry into service is anticipated in the mid-2030s.

“We have made significant progress in our testing plan, which confirms the benefits of the Open Fan propulsive system for the next generation of single-aisle aircraft,” said

Wind tunnel tests on Open Fan

Safran Aircraft Engines—one of the parent companies of CFM—and France’s national aerospace research agency ONERA are performing wind tunnel tests with the ECOENGInE, a 1:5 scale demonstrator of the future Open Fan.

Open Fan is a key pillar of the CFM RISE technology demonstration program that promises a 20% reduction in CO2 emissions compared with today’s commercial engines.

Safran Aircraft Engines and ONERA signed a framework agreement for an ambitious test plan from 2024 to 2028, building on previous trials with the ECOENGInE.

In total, over 200 hours of testing have been performed during this campaign, including simulation tests with the engine mounted on a demonstrator plane wing section.

“This series of wind tunnel tests is a major milestone in our

research and technology (R&T) roadmap, which aims to develop the technological building blocks for the next breed of commercial jet engines,” says Pierre Cottenceau, VP Engineering and R&T for Safran Aircraft Engines. “With the RISE program, Safran Aircraft Engines is contributing our long-standing expertise to the development of the fan module to demonstrate the beneﬁts of an unshrouded engine architecture on the

ground and in ﬂight by middecade.”

Safran is also coordinating demonstration of the Clean Aviation OFELIA project (Open Fan for Environmental Low Impact of Aviation), which involves 26 European partners, including ONERA. Moreover, the company is working on other major technological building blocks in conjunction with the Open Fan architecture, such as hybrid propulsion.

Developing hybrid electric systems with NASA

GE Aerospace is developing a hybrid electric demonstrator engine with NASA that will embed electric motor/ generators in a high-bypass commercial turbofan to supplement power during diﬀerent phases of operation.

This includes modifying a Passport engine with hybrid electric components for testing through NASA’s Hybrid Thermally Eﬃcient Core (HyTEC) project.

Embedded electric motor/ generators will optimize engine performance by creating a system that can work with or without energy storage like batteries. This could help accelerate the introduction of hybrid electric technologies for commercial aviation prior to energy storage solutions being fully matured.

“Together with NASA, GE Aerospace is doing critical research and development that could help make hybrid electric commercial ﬂight possible,” said Arjan Hegeman, General Manager of future of ﬂight technologies

at GE Aerospace. Results of the hybrid electric component and baseline engine tests are being used to evaluate and update models in preparation for a ground test.

“We’re advancing state-of-the-art propulsion systems for next generation commercial aircraft with an important aim—to drive industry eﬀorts to improve eﬃciency and reduce emissions compared to today’s aircraft engines,” Hegeman said.

NASA recently awarded GE Aerospace a contract for Phase 2 of the HyTEC project

Pierre Cottenceau, Executive Vice President of Engineering and Research & Technology for Safran Aircraft Engines. “We successfully completed key tests on fan acoustics, aerodynamics, and blade ingestion, and the high-speed, low-pressure turbine,

to continue developing technologies for an aircraft engine core demonstrator test later this decade. Phase 2 builds on work completed in Phase 1 of HyTEC for high-pressure compressor and high-pressure turbine advanced aerodynamics, as well as the combustor.

In 2022, GE Aerospace completed the world’s ﬁrst test of a MW-class and multi-kilovolt (kV) hybrid electric propulsion system in altitude conditions up to 45,000 feet that simulate single-aisle commercial ﬂight at NASA’s Electric Aircraft Testbed.

while advancing hybrid electric tests for our suite of pioneering technologies.”

Hybrid electric

Other important technology pillars in the RISE program include hybrid

electric systems. This provides an alternative source of power during certain phases of ﬂight. Early testing has been conducted towards demonstrating turbofan and electric machine control with a Passport engine.

A demonstration of megawatt-class, flight-quality electric power components is the target for the RISE program and other GE Aerospace projects support this aim, such as the NASA Electrified Powertrain Flight Demonstration (EPFD) program, which calls for ground and flight tests of the hybrid electric system this decade.

GE Aerospace is also working with NASA on compact core technologies through the Hybrid Thermally Eﬃcient Core (HyTEC) program. The compact core needs to feature new materials and advanced cooling but Hegeman says that feasibility isn’t the issue. “Testing has taken place on combustor materials as well as how combustion impacts contrails, fuels, and emissions,” he notes.

Meanwhile, compressor rig tests have focused on validating new aerodynamic and aeromechanic technologies.

From supercomputing to sustainability

Supercomputing is playing a vital part in RISE program testing and modeling. Previously, computer-run simulations had to have some “wiggle room”, but supercomputing enables models to be extremely accurate, which, in turn,

“Thanks to supercomputing, we now understand in detail what happens around the blades. We can truly tackle turbulence in air ﬂow, which is how we can improve acoustics and eﬃciency.”

ensures work on such factors as noise and performance are exacting from the outset.

Ultimately, it will allow all technology pillars to dovetail into a game-changing engine that redeﬁnes aviation.

Also integral to every facet of the RISE

program is how to make the technology more sustainable. The target for this game-changing program is to improve fuel burn and reduce CO2 emissions by more than 20% compared with the most eﬃcient commercial aircraft engines in service today. Engine technologies are being

RISE tackles maintenance issues

Reducing the maintenance burden is a key consideration for the RISE program.

Arjan Hegeman, Future of Flight Technologies Leader, GE Aerospace, reveals that the biggest challenge is durability in the combustor, the hottest part of the engine.

But advanced cooling techniques are developing rapidly and will ensure combustor durability and engine time on wing. This is a key consideration for airline

clients in a highly competitive market where aircraft utilization is key.

After conducting its ﬁrst test run of next-generation HPT blades and nozzles using a demonstrator engine, GE Aerospace has started a second HPT airfoil test campaign focused on endurance, demonstrating the RISE program’s focus on durability.

Open Fan also means no nacelle or thrust reverser.

Indeed, whole subsystems will be removed that have traditionally taken up maintenance time and costs.

“Every aspect of operations is examined through the RISE program,” says Hegeman. “The economics have to be viable and the substantial performance improvements available through the RISE program will produce an engine that makes ﬁnancial sense for our clients.”

100%

Engine technologies are being designed for compatibility with 100% or unblended SAF. CFM is also advancing hydrogen combustion technologies

designed for compatibility with 100% or unblended Sustainable Aviation Fuel (SAF). CFM is also advancing hydrogen combustion technologies—and all technologies are being validated to meet the most stringent non-CO2 and noise emission requirements.

“We are convinced that climate change is a major issue and any product that is truly more sustainable will have a competitive edge,” says Hegeman. “It’s not just about reducing carbon emissions. We’re also looking at a lean burning combustor to reduce NOx particles (nitric oxide (NO)) and nitrogen dioxide (NO2) and improved manufacturing techniques, among many other initiatives.”

Hegeman concludes that the RISE program’s suite of pioneering technologies being pursued by more than 2,000 engineers represents a pivotal moment in aviation history as it transitions from ideas to reality.

“It should not be underestimated how committed we are to the RISE program, Open Fan, and all the other innovative technologies,” he sums up. “We have been working on these ideas for a long time, we have done a lot of testing and modelling with the most advanced computers and simulations in the world, and we know no technical reason why this wouldn’t work.

“It is real, and it is going to happen.”

100% SAF Compatibility 250+ Tests Completed 20% Better Fuel Eﬃciency Target 2000+ Engineers

About CFM RISE

The CFM RISE (Revolutionary Innovation for Sustainable Engines) program will demonstrate and develop a range of innovative, disruptive technologies for aircraft engines that could enter service in the mid-2030s.

OPEN FAN

Open Fan technology removes the engine nacelle, allowing for larger fan blades and reducing drag. The improved aerodynamics and increased air flow significantly enhances fuel efficiency.

HYBRID ELECTRIC

Hybrid electric engines use alternative power during certain phases of ﬂight to reduce emissions. As part of the RISE program, GE Aerospace is working with NASA on a hybrid electric demonstrator that embeds electric motor/generators in a high-bypass turbofan.

SUSTAINABLE AVIATION FUELS

All CFM engines work with blended SAF, and the RISE program is researching and supporting development of standards for 100% or unblended SAF, which has the potential to reduce fuel lifecycle carbon emissions.

ADVANCED MATERIALS

Through the RISE program, CFM continues to advance composite materials, such as carbon ﬁber and ceramic matrix, which are lighter and stronger than their metal counterparts. This not only improves durability but also fuel eﬃciency.

HYBRID ELECTRIC

OPEN FAN

to the greatest team in aviation. Together, you make CFM extraordinary; the future is in very good hands.

Gaël Méheust President & CEO, CFM International

Data at the heart of AI success

Artificial intelligence can help improve a multitude of issues in the aviation industry, but the data must be used in the correct way

WORDS: GRAHAM NEWTON

Aviation has plenty of data. Every day, more than 100,000 ﬂights generate vast swathes of information on myriad topics, ranging from passenger preferences to technical performance.

The industry’s challenge has always been how to make use of it. The data has existed in silos and the immensity of it overwhelmed computing power. Even where valuable insights were extracted, it took time.

But times change. Computing power has enjoyed exponential growth, and a decades-old concept has come to the fore to distil the data stockpile.

Needle in the haystack

Artificial intelligence (AI) is a much-hyped term but, says Kim Macaulay, IATA’s Chief information and Data Officer, rightly so. “AI is different from a sophisticated piece of modern software,” she says. “With software, you get out what you expect to get out—there are

pre-deﬁned terms and rules. With AI, the code adapts and the output develops. For example, ChatGPT has improved enormously since its launch in 2021 without the need for software engineers to constantly review the nuts and bolts of code and release updates.”

Making sense of the plentiful data that has always been in airline hands was much like looking for a needle in a haystack. AI is a magnet that helps airlines ﬁnd that needle. Insights that might take months or even years for a human to realize can be seen by AI in a matter of minutes.

In other words, AI is essential to helping the industry extract the latent value from its data in the coming years.

AI will be seen throughout the industry, from customer-facing disciplines to back-oﬃce systems. Aviation is rules-based with standard operating procedures, making AI an extremely useful tool. Already, checkbots—kiosks to help customers in a variety of tasks—are becoming commonplace.

AI will also be critical to the success of the 100% Oﬀer and Order environment.

Personalizing a journey, especially in real time, will require AI platforms to run through the many possible permutations.

“And there’s a lot that is being done in baggage management too,” says Macaulay. “Imagine if you could accurately assess the amount of cabin baggage. It’s not just about reducing the turnaround time. Perhaps you could combine checking in a bag with lounge access, for example, creating a win-win situation for airline and customer.”

Operational optimization is another obvious target for AI. Improvements range from enhanced crew rostering to predictive maintenance. Fuel management is another major area that is receiving a lot of attention given the importance of reducing carbon emissions.

Other aviation stakeholders employing AI will also play their part. Air navigation service providers could realistically engage with

AI relies on abundant, good quality data. But there are lots of rules about data and how it can be used, and more rules are on the way. Finding a way through this maze of regulations will not be easy.”

Kim Macaulay, IATA’s Chief information and Data Officer

aircraft on contrail and turbulence avoidance. Finally, there is disruption management. In the complex aviation ecosystem, delays and cancellations occur for a variety of reasons and for varying lengths of time. AI can trawl through available data and come up with real time, relevant solutions at an operational or individual customer level.

What are the challenges?

There are, of course, challenges to overcome. Implementing AI—like any advanced piece of technology—is not easy and takes money and resources. Aviation is not yet at the forefront of career choices for AI specialists, something that the industry is trying to change.

Airlines must also understand where the balance between humans and AI should be. This is not about jobs or automation—AI will generally allow staff to take on more interesting roles overseeing AI output—but rather about where customers would prefer human interaction. Losing a bag or rebooking following a disruption may be areas where customers will continue to prefer human assistance. Banking, for example, closed branches when it first used AI and then realized it perhaps wasn’t the best idea. As with staff, the key is to empower customers rather than disenfranchise them.

There is a sustainability angle to consider

too. Huge amounts of computing power come with a carbon cost, which will need to be properly addressed.

But, without doubt, the biggest challenge is data. “AI relies on abundant, good quality data,” says Macaulay. “But there are lots of rules about data and how it can be used, and more rules are on the way. Finding a way through this maze of regulations will not be easy.”

It’s also true that sharing data doesn’t come naturally in such a competitive industry. Governance and cybersecurity will be critical going forward. And with legacy systems still abundant, data quality is also an issue.

Getting started in AI

For airlines just embarking on the AI journey, Macaulay advises starting slow. AI is not the cure for all ills. Although this can be the perception—other “hot tech” before it, such as

IATA has set up an AI Technical Board to support airlines on AI. The board comprises representatives from multiple fields, including IT, cybersecurity, legal, and business development. The aim is to allow data scientists and machine learning experts to build models in a neutral environment.

the Cloud and blockchain, suﬀered a similar fate—AI’s implementation must be carefully thought out.

“Most importantly, implementing AI must be a business-led strategy,” Macaulay says. “It is not just a technology for the IT department. AI’s ability to transform is such that its use must be discussed in the boardroom. New revenue streams, diﬀerent business models, and innovative operational changes could all result from AI. In fact, airlines should think of AI as an exponential technology not an incremental one. Suddenly, new use cases will open up.”

IATA is supporting airline eﬀorts through various channels. It has set up an AI Technical Board, comprising representatives from multiple ﬁelds, including IT, cybersecurity, legal, and business development. The aim is to allow data scientists and machine learning experts to build models in a neutral environment.

IATA is also building a data science community that is working toward diverse proofs of concept not only for airlines but also for other aviation stakeholders, such as ground service providers and travel agents. A lot of investment is also taking place in training.

“We are creating trusted research environments,” says Macaulay. “Airlines want to stay in control of their data while sharing it and we can do that now,”

Forecasting the future

To date, airlines are only seeing the tip of the iceberg when it comes to AI. Although predictive analytics seems an initial focus, particularly in the wake of the pandemic when AI might have provided crucial hints about possible strategies, AI is sure to be employed across the board.

“There is so much we don’t know yet,” Macaulay concludes. “The future is really exciting, but AI should be business-led, and we’ll see where we go from there. We must remember that data is at the heart of AI’s success and ensuring access to quality data is the ﬁrst step.”

IATA and the Aviation Sustainability Forum (ASF) are collaborating to launch a standardized Cabin Waste Composition Audit (CWCA).

The CWCA will be an essential tool in aviation’s sustainability eﬀorts. Previous IATA research identiﬁed the lack of a standardized methodology in cabin waste audits. As a result, harmonized data is not available to underpin decision-making by airlines, caterers, and policymakers regarding waste management and circularity issues.

A standardized approach to CWCA analysis will help to solve these concerns and enable the sector to enable and demonstrate progress in waste reduction.

“Managing and reducing waste is an important component of aviation’s overall sustainability,” says Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist. “Obtaining standardized and comparable data regarding the composition and quantity of waste from ﬂights will help the industry to reduce the waste it generates. Better data will also help policymakers to harmonize regulations, which in turn can help optimize the industry’s capability to sort, recycle, and safely re-use waste that cannot be avoided. Working with ASF in developing this audit program is a signiﬁcant step forward in improving the circularity of the sector.”

How it works

Audits primarily take place in catering and cabin cleaning units. The ﬁrst step is to understand total waste by source onboard and within each source, the material category and type. These “benchmark audits” allow an airline and its partners to identify areas that need attention and then monitor and improve those areas going forward. They also allow comparisons to be made against metrics from similar ﬂights in terms of passenger numbers, duration, aircraft type, and so forth.

“Individual audits are like disparate pebbles on a beach,” explains Matt Crane, ASF’s

Founder. “This standardized CWCA program ensures all audits are comparable and every pebble is the same size and shape. Then we aggregate the data—build the pebbles into bricks—to understand low-cost, short, medium, and long-haul ﬂights. From these bricks, we can then build a house; by aggregating all audit data, we can provide quantitative, industry-level information to enable meaningful discussions between airlines, caterers, innovators, and policymakers.”

Airlines are intrinsic to the audit process. Aside from basic operational details, airlines need to supply details of cabin loading plans, such as the menu, the amount of each item loaded, its location, and whether the ﬂight is back catered for the return journey.

“We need to know what goes in so we can fully understand what comes out and make informed decisions,” says Daniela Stange, IATA’s Sustainability Manager. “This approach also allows to prioritize preventing waste in the ﬁrst place.”

Stange and Crane accept that the initial

Reduction in cabin waste per passenger in the last decade

Cabin waste audit giving an appetite for change

Having been trialed recently, Graham Newton reports that audits are being stepped to ensure standardization 200g

benchmark audits require time and resources— especially for caterers and cabin cleaners— but the potential gains are large enough to justify this. The ASF is also employing technology to optimise eﬃciency in future audits and will employ artiﬁcial intelligence to build data accuracy.

Lesson learned

CWCA audits have already been trialed in two waves, covering 25 ﬂights of varying length and hosted by SATS Catering at Singapore’s Changi Airport in November 2023 and April 2024.

Preliminary results indicate that the sector is generating more than 3.6 million metric tonnes of cabin and catering waste annually, with 65% being food and beverage waste. Untouched meals account for 18% of all waste.

Short-haul flights contribute about 700g per passenger while long-haul flights generate 1.2kg per passenger. In 2014, similar audits were commissioned by IATA, where long-haul flights generated 1.4 kg per passenger, meaning airlines have managed to cut 200g per passenger on long-haul in the past decade.

“That is a good start, but the entire industry needs to continue improving given that cabin waste could double by 2050 in line with the growth in passenger demand,” says Stange.

“The key ﬁnding so far is the number of untouched meals that ends up as waste. Due to outdated regulations, some countries require special handling and treatment of this waste, which translates into some $2 billion per year in food cost alone that is being incinerated.”

What next?

The ASF audit program is ongoing with additional airlines now joining. The immediate aim is to encourage more airlines and caterers to join and help shape the CWCA program to build up the data mountain. This can then be used to make informed decisions about the best way forward. As Crane notes, the

conversation is just beginning.

“Eﬀectively managing cabin waste is a challenge that can be solved with the backing of data,” he says. “It is the responsibility of the sector and its regulators to come together, understand the problem, and align on the needed solutions.”

Caterers and cleaning companies are also being invited to the table as they have insight into the potential to standardize packaging or better sort waste within their operational units. Standardized, on the ground waste sorting and recycling procedures are another possible avenue to explore within and outside regulated jurisdictions.

“Yes, there are challenges around the diﬀerent products and services airlines oﬀer, but there are ways forward,” says Stange. “Airlines could reuse untouched food for philanthropic purposes or send for composting, for example. But regulations simply don’t allow that in most jurisdictions. The harmonized information gathered through the audits provides data that is needed to support our call for regulatory change that will allow the sector to continue improving circularity in the air and work collaboratively with regulators.”

Crane suggests that eﬀective solutions at scale and their associated impact from other areas of operations, such as new technology for aircraft and sustainable alternative fuel, are still years away.

“But cabin waste is directly within the control of airlines and caterers through their own personnel and contractors,” he says. “If the industry comes together, including regulators, we can make a huge diﬀerence almost immediately. It would be a good story. It would show that airlines and caterers can act and improve within those areas that are directly within their control.

“The more airlines that sign up to the CWCA program, the more credible the data. And the more credible the data, the better the decisionmaking by the sector and the better the case for change to be presented to policymakers.”

Explainer

The challenge of sustainable aviation fuel (SAF). Total estimated SAF production needed to mitigate 65% of airline emissions by 2050 is 450 billion liters.

80% of SAF over the next ﬁve years is likely to come from hydrogenated fatty acids (HEFA): used cooking oils, animal fats, etc. Accelerating the use of other feedstocks will greatly expand the potential for SAF production

Incentives such as tax credits are needed to make SAF production attractive compared to other fuels such as renewable diesel fuels

Feedstocks

SAF can be produced from a variety of feedstocks. These include waste oils and fats, agricultural residues, municipal solid waste, and even algae

The choice of feedstock is crucial as it must not compete with food production or cause deforestation

Government support is vital for encouraging SAF. A joined up approach from across multiple ministries is required

Data source: IATA Illustration: Jacob Stead

86% of travelers in a recent IATA survey agreed that governments should provide incentives for airlines to use SAF

86% of air passengers also agreed that leading oil corporations should prioritize the production of SAF

Explainer explained

The airline industry aims to achieve netzero carbon emissions by 2050 through increased use of Sustainable Aviation Fuel (SAF), improved aircraft technology, operational eﬃciency, and and carbon oﬀsetting/capture. SAF is key, potentially cutting lifecycle emissions by 80% compared to jet fuel, but faces challenges like limited production, high costs, and the need for supportive policies. Achieving this requires global cooperation.

140 renewable fuel projects have been announced to be capable of SAF production by 2030

5% of approved renewable feedstocks can be used to co-process SAF alongside crude oil in existing reﬁneries, but this could potentially rise to 30%

1.9 bn liters expected production of SAF in 2024—triple the amount in 2023

Travelers

Collaborating to meet decarbonization target

Toshiyuki Onuma, Senior Deputy

Director-

General, Japan Civil Aviation Bureau and candidate for election to President of ICAO Council says aviation must achieve net zero CO2 by 2050

The most challenging aspect of decarbonizing aviation is that no one party has the solution. Answers are not even to be found in the combined efforts of the aviation sector. It is necessary to involve stakeholders outside of this industry. That includes those in the fields of energy and feedstock production and those covering technologies related to biology, hydrogen and other renewable energies, carbon capture, and some that we have not even thought about yet! When faced with such a massive and complex task, I am a believer in the spirit of 3C: Communication, Coordination, and Collaboration. That is the structure that my office has put in place in Japan to encourage, stimulate, and prioritize sustainable aviation

fuels (SAF) production—the most critical element for decarbonization. This will help Japan to do what every country will be expected to do to achieve the long-term aspirational goals on climate change that have been agreed by governments through ICAO.

In the case of Japan, we are setting the stage for successfully ramping up SAF production by accommodating various stakeholders’ participation in the policy-making process with a “Public-Private Council”. Its job is to facilitate the communication essential to lead productive policy coordination. This has resulted in support for a hybrid policy approach combining mandates and incentives for SAF production. And I ﬁrmly believe that such an approach could not be conceived or implemented without the broad

communication that the Council enabled.

The decarbonization challenge will also not be solved by a single state. Of course, each state is responsible for its own domestic policies. But coordination between and among states is critical for the practical reason that an aircraft on an international ﬂight is fueled in two jurisdictions so policies cannot work unless they are aligned. The “Green Lane” initiative proposed by Japan, Singapore, and the United States is the exact reﬂection of this, and I would emphasize that is an open partnership. Likeminded states are always welcome to join us.

Lastly, in addition to communicating and coordinating, it is necessary to work together— the last C of collaboration. Each country will face unique challenges to produce SAF. Some have an abundance of feedstock. Others may be ahead on the technology. In the case of Japan, we have the technology and are actively

Japan is a country surrounded by oceans, aviation is not a luxury—it is the fundamental means of connecting to the world. Sustainable aviation by 2050 must be achieved.

contributing to global capacity building through programs, such as the ICAO Assistance, Capacity-building and Training (ACT) SAF initiative, to help countries support the development and deployment of SAF.

Meeting the decarbonization challenge is essential. Coming from Japan, a country surrounded by oceans, aviation is neither a luxury nor a mere option for international travel—it is the fundamental means of connecting to the world. We need aviation and airlines. And their operations must be sustainable. Net zero carbon emissions by 2050 must be achieved. We are beyond discussing whether or not we will hit the aspirational target. The dialogue is about how net zero carbon emissions will be achieved. In this regard, Japan provides some hints about which elements should be fulﬁlled to establish practical policies at state level. It is my pleasure to share them.

As a candidate to be the next President of the ICAO Council, I am also viewing the decarbonization challenge in the global context. The three Cs, I believe, have a role to play. ICAO has long had a philosophy of “No Country Left Behind”. With the three Cs as a guide, I am confident that we can find the solutions every country needs and wants to make flying sustainable.

Spain aiming for more SAF

Sustainable aviation fuel (SAF) is integral to aviation’s net-zero CO2 emissions by 2050 target, but supply is lagging demand. Some 1.5 million tonnes of SAF was produced in 2024 but more than 400 million tonnes is needed by 2050.

In Europe, the ReFuelEU initiative has set a 2025 mandate for 2% SAF use from EU airports, rising to 6% in 2030 and 70% in 2050. From 2030, 1.2% of fuels must be synthetic—so-called e-fuels or power-toliquid fuels that reduce carbon emissions still further—rising to 35% in 2050.

Margarita de Gregorio, President of the Spanish Air Transport Sustainability Alliance, says ReFuelEU is “an unquestionable turning point and represents a huge opportunity to signiﬁcantly advance the decarbonization of air transport in the next two decades.”

De Gregorio notes that mandates are needed to start positioning stakeholders to a common objective but adds that targets are the end point,

Nation ensuring it meets ReFuelEU goal of 2% sustainable fuel use by 2025 and beyond

“and the ways and tools to get them must be ﬁgured out, developed and implemented in each Member State, which means that there is still a lot of work to do.”

Spanish SAF

In Spain, public and private entities from multiple sectors are working together in the Spanish Air Transport Sustainability Alliance. De Gregorio believes that the private sector does see the potential in investing in SAF production and public-private partnerships are likely to be carried out in the short term.

Transition challenge

Spain’s Ecological Transition and Demographic Challenge Commission has approved a proposal calling for the central government to: Provide incentives for sustainable aviation fuels (SAF) production Fund research and development for new SAF sources

Establish public-private partnerships for SAF Develop strategies for access to waste and biomaterial for SAF feedstock.

One reason for this is the abundance of renewable resources in Spain, including biomass from crops, forests, industries, and landﬁlls; and photovoltaic and wind. The latter two could be used for producing e-fuels in the future.

Industries including air transport, oil and gas, biofuels, and hydrogen are aligning with public administrations from the national government and regional governments to

participate in the challenge, according to de Gregorio. “The aim is to ensure that this transition to greater sustainability in air transport has a positive impact by inducing industrialization, circularity of resources, and more energy independence,” she says.

“Regarding [e-fuels], green hydrogen is produced by an electrolysis process powered by solar or wind energy,” says de Gregorio. “Spain has more than 60,000MW of photovoltaic and wind energy installed, and several thousand more megawatts are being developed with the aim of producing [green fuel].”

From proposal to law

IATA’s Regional Vice President for Europe, Rafael Schvartzman says the Ecological Commission’s proposal for greater Spanish state support for SAF is a step in the right direction.

“It is encouraging this proposal has support across the political spectrum,” he says. “Recognizing the importance of aviation, the political consensus is to decarbonize ﬂying without restricting people’s access to air travel. It is now critical for the government to turn this proposal into law.”

Daniel Chereau, IATA’s Head of Fuel, agrees that Spain will be a leader in Europe and a global example for others.

“It is refreshing and encouraging to see plans for incentives supporting SAF research, development, and production in Spain,” he says. “But in Europe, we need a larger portion of emission allowances from the EU Emissions Trading Scheme to be allocated to SAF.

“We also need to see more incentives elsewhere. The US has signiﬁcant incentives in place beneﬁtting the whole aviation value chain, including farmers. But there is little global activity when it comes to incentivizing SAF.”