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Continued from page 80


earliest it might begin. Expanding the three London airports would mean capacity for an additional 62 million passengers a year at Heathrow, 34 million at Gatwick and 14 million at Luton. Legal challenges appear certain,


although the Treasury promised “sweeping reforms” to planning rules on infrastructure projects this week in a Planning and Infrastructure Bill to be introduced this spring. That followed a pledge from the prime minister’s office last week to stop campaigners “blocking infrastructure projects with continued legal challenges”. Judges will gain powers to


limit appeals where a High Court hearing “deems a case ‘totally without merit’”. The government has


consistently said airport expansion must meet four tests – on carbon emissions, noise, air quality and growth – with those on emissions and air quality likely to be most challenging. But the Supreme Court overturned an Appeal Court ruling in 2020 that the then government’s statement in favour of Heathrow expansion was unlawful as it failed to take adequate account of the Paris Agreement on climate change. There was a less than


enthusiastic reaction to the prospect of Heathrow expansion from Luis Gallego, chief executive of British Airways parent IAG, which holds 56% of the slots at Heathrow. He insisted: “The situation


at Heathrow needs to change. It’s the most expensive airport in the world, but the experience for passengers doesn’t match this. The last review of its business model was 15 years ago. We wouldn’t support [a third runway] with the current regulatory model.”


IAG boss asks ‘who will fund UK’s SAF strategy?’


Ian Taylor


The head of British Airways’ parent International Airlines Group (IAG) questioned the value of the UK’s sustainable aviation fuel (SAF) Mandate and planned SAF revenue certainty mechanism last week. IAG chief executive Luis Gallego


said: “We can’t think because we have a mandate, we will have SAF. We can’t import it all from the US. That doesn’t make sense.” He noted the government has


“proposed a pricing mechanism to de-risk SAF projects in the UK”, but said: “How will it be funded? Who pays for it?” Speaking at an Airlines UK event


in London, Gallego insisted: “We’ll pay for SAF, but we don’t want to pay twice – first by buying SAF and second by funding a price scheme.” Gallego told aviation leaders: “We


were the first airline group to commit to net zero emissions by 2050, the


Gallego says BA can lead way in airline technology


British Airways aims to be “at the forefront” of airline technology, according to the boss of parent IAG, but is struggling to overhaul its existing tech systems. The airline has been engaged


for several years in developing a new commercial platform and moving systems to the cloud. IAG chief executive Luis Gallego


78 30 JANUARY 2025


insisted: “We need a European SAF industry as soon as possible.” The UK SAF Mandate, which


Luis Gallego


first in Europe to set a sustainable fuel goal, and the first group to extend net zero to our whole supply chain. “The good news is we’re on


track for 2050. We’ve made progress on SAF. Last year we announced our biggest SAF deal to date with US producer Twelve, a plan to buy completely synthetic jet fuel.” But he said: “There is also bad


news. In Europe, we’re very far behind the US on sustainable fuel. At some point we’re going to have to debate what we want. We can kill aviation in Europe, but we’re still not going to save the planet.” Gallego


acknowledged the time it is taking to upgrade BA’s technology, saying: “A lot of systems were built one above the other. “We’re reviewing all systems,


moving all systems to the cloud, moving data centres, building a new commercial platform, BA Nexus.” He insisted: “Things are


improving. We think we’ll see a new BA in the second half of this year.” Gallego suggested the new


platform would “put BA at the forefront of airline technology and commercial platforms for the years to come”. He added: “BA can be the best airline in the


world. [But] it is the most difficult thing to change the culture in a company like BA or Iberia.” Gallego revealed IAG recently


set up a ‘central innovation team’ to look at AI use, saying: “We want to be a leader in AI.”


travelweekly.co.uk


requires a minimum 2% SAF use across all departing flights this year, came into force on January 1. But there is only one SAF plant operating in the UK. The mandate requires increased


SAF uptake each year to hit 10% in 2030, and aviation minister Mike Kane insisted he is “reasonably confident” the target will be hit. But Kane acknowledged there is insufficient SAF in the UK, saying: “SAF will have to be sourced from overseas.” He confirmed a revenue certainty mechanism would be introduced by next year. The 2030 target will require


about 1.2 million tonnes of SAF be supplied each year. Low carbon fuels consultant Dr Chris Malins warned this month of a “likely compliance shortfall in a number of years” without “rapid investment in SAF production and billions in capital expenditure”.


BA wants to be a ‘leader in AI’


PICTURE: MOD Crown Copyright


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