In line with new ecological obligations introduced by France, Air France KLM will be using biofuels in its aircraft. This will result in a surcharge for its customers.
A new ecological obligation
Reflecting European environmental objectives, on January 1 France introduced the obligation to use 1% sustainable aviation fuel (SAF) on departures from French airports.
The law provides for this obligation to rise to 2% in 2025 and 5% in 2030, with a target of 50% in 2050.
A greener, more expensive fuel
“SAF” reduces CO2 emissions by 80% compared with kerosene. A good reason to make a fast transition?
Not so obvious: its price is between 4 and 8 times more expensive than traditional fuel. This gap will narrow over time, once the production chain has been developed and operates at full capacity, but it is holding back airlines, for whom the impact is anything but neutral, given that fuel accounts for 40% of their operating costs.
All in all, Air France expects to use 15,000 tonnes of sustainable fuel in 2002, i.e. 10 times more than in 2021, a figure that exceeds its obligations.
A SAF surcharge at Air France
To offset this additional cost, Air France has decided to introduce a “Sustainable Aviation Fuel Contribution” of 1 to 4 euros in economy class and 1.50 to 12 euros in business class, depending on distance. This practice will also apply to KLM and Transavia. One more surcharge to add to the price of the ticket.
That said, one question remains unanswered: as the obligation only applies to flights departing from French airports, will Air France use normal fuel or biofuel for return flights on its international routes?
And which KLM flights are affected? For if the obligation only affects flights departing from France, systematizing the tax for all flights seems a little exaggerated from the customer’s point of view, or perhaps it’s in anticipation of a similar policy in the Netherlands.
From January 13, Air France passengers will also be able to contribute to the purchase of additional SAF fuel to offset their carbon footprint. A proposal whose success we’re curious to see…
And abroad?
Each country is free to decide how it aligns itself with the European objectives for combating climate change. In France, this type of obligation will certainly be seen in other countries. Others are considering adapting airport taxes to the fuel used, rather than a tax (Sweden).
It remains to be seen, however, how this will be passed on to customers, a decision which is left to the airlines themselves. Certain countries or airlines in better (or less poor) health than Air France could take advantage of this to dump their products, and it wouldn’t be the first time that the French state has shot the national airline in the foot.
But the consistency of government practices will determine whether competition in Europe’s skies will be more or less distorted, which is a real issue.
We’ll certainly have the opportunity to talk about it again this year.
Bottom line
France is imposing an obligation to use sustainable fuel, which Air France will pass on in ticket prices, inevitably given the costs involved and the health of the airline.
The effectiveness of this measure on the environment…and competition…will be judged by the coherence of government measures in the future.
Image : Air France A318 by Nieuwland Photography via Shutterstock
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