RE: Oil Price Down25 Oct 2023 11:51
Mr Gallego, director of British Airways parent company IAG, told reporters at a roundtable discussion that there was a more than 90% risk that the industry would not comply with the EU demand European Union for the availability of sustainable aviation fuel (SAF) in 2025.
The European Union has adopted rules requiring flights departing from EU airports to carry a gradually increasing amount of SAF, starting with 2% of total fuel in 2025.
Gallego said Europe's tougher rules, compared with those in other regions, risked making its industry less competitive, putting pressure on airlines to continue their recent wave of partnerships. .
“ The problem we have in Europe is that we have a small group or a small airline fighting a global war with sustainability mandates that are ahead of the others. We will not be competitive ,” Mr. Gallego said.
“ We therefore need to consolidate the sector, in order to be able to afford all the ambitions that we have, for example, in terms of sustainable development. This is why we are trying to be bigger, more efficient and develop better platforms for our customers . »
Ryanair chief executive Michael O'Leary predicted further consolidation, with IAG best placed to buy Portuguese carrier TAP, ahead of rivals Air France-KLM and Lufthansa.
He also reiterated his predictions that low-cost rivals Wizz Air and easyJet would fall into consolidation, with easyJet being bought by IAG or Air France-KLM, or both, and Wizz Air being bought by Lufthansa or a Middle Eastern acquirer.