ARC NEWS
IATA lashes SAF mandates as it warns output is slowing
December 11, 2025
IATA is blaming "poorly designed mandates" in the UK and European Union for a projected slowing in the production of sustainable aviation fuel (SAF) in 2026. The industry body says that this year SAF output is expected to nearly double to 1.9 million tonnes compared to 2024, but next year growth will slow with capacity only set to reach 2.4 million tonnes. Further, it adds that all SAF production in 2025 equates to only 0.6% of total fuel consumption, while airlines carried an additional $3.6 billion of cost due to the alternative fuel's premium pricing. It says that the ReFuelEU Aviation mandate pushed up SAF costs due to limited production capacity and "oligopolistic supply chains", while the UK's SAF mandate has caused price spikes. "If the goal of SAF mandates was to slow progress and increase prices, policymakers knocked it out of the park. But if the objective is to increase SAF production to further the decarbonization of aviation, then they need to learn from failure and work with the airline industry to design incentives that will work," states IATA director general Willie Walsh. The organisation has called on both the UK and EU to not repeat the policy missteps of the current mandates when their eSAF mandates are implemented in 2028 and 2030, respectively. Senior vice-president for sustainability and chief economist Marie Owens Thomsen called on regulators to "course-correct" and ensure the long-term viability of SAF production so that prices can come down. "Mandates have done just the opposite, and it is outrageous to repeat the same mistakes with e-SAF mandates," she says.


Rolls-Royce inaugurates engine MRO shop in Beijing
December 11, 2025
Rolls-Royce has formally opened its jointly owned engine overhaul facility with Air China in Beijing. Named Beijing Aero Engine Services (BAESL), the site will support Airbus A350-900-powering Trent XWB-84s alongside Trent 700s and Trent 1000s, optionally available for A330ceos and Boeing 787s, respectively. Overhaul operations are scheduled to begin in 2026, with a plan to complete 250 shop visits a year by 2034, Rolls-Royce says. It highlights the site's role as the first dedicated Trent MRO facility in mainland China for customers in the nation "and beyond". In Hong Kong, Rolls-Royce operates a jointly owned overhaul shop with local maintenance specialist HAECO, which is part of Swire Group, Cathay Pacific's largest shareholder. That engine shop, HAESL, supports both Trent XWB-84s and -97s (used on A350-1000s and the in-development A350 Freighter) as well as the Trent 700s, Trent 800s (optionally available for first-generation 777s), Trent 1000s and legacy RB211-524Gs. The Civil Aviation Administration of China has granted BAESL a maintenance organisation certificate, "confirming the facility's readiness to deliver professional, reliable and high-quality overhaul services on Trent engines", Rolls-Royce says. "China is one of the largest and fastest growing widebody markets in the world and is also key to Rolls-Royce," states the UK manufacturer's director commercial aviation aftermarket operations Paul Keenan. "We power more than 500 of China's in-service commercial aircraft; nearly 20% of our global Trent engines were delivered to China. Increasing flying hours, new orders and existing fleet upgrades all lead to growing demand for shop visits, both in China and around the world." Cirium fleets data shows that Air China's mainline passenger fleet of 529 aircraft includes 88 Rolls-Royce-powered jets: 44 A330ceos, 30 A350s and 14 787s.


Delhi caps fares as IndiGo works to restore on-time performance
December 10, 2025
India's civil aviation ministry has implemented fare caps on airlines as the nation's largest carrier IndiGo works to stabilise its network after days of severe disruption. In a statement issued on 7 December, IndiGo said it was on track to operate over 1,650 flights that day, with an on-time performance of around 75%, compared with 30% the previous day. On 8 December, it said its daily total would reach 1,800, and that on-time performance had improved to 91%. Within its 7 December statement the airline declared its "growing confidence" that the network would be stabilised by 10 December, after previously giving a timetrame of 10-15 December. This followed a "reboot" of its network on 5 December, when it cancelled hundreds of flights to deal with major disruptions, which it blamed on weather, schedule changes, technology glitches and the implementation of new duty-time limitation regulations on its crew. In response, the Directorate General of Civil Aviation (DGCA) suspended the regulations temporarily to allow IndiGo to roster more pilots. The Ministry of Civil Aviation said in a 6 December statement that it was capping the maximum fares airlines could charge in order to offset "a shift in demand and temporary surge in airfares". It subsequently reported that fare levels across affected routes "have moderated to acceptable limits". India's government intends to convene a high-level inquiry into the disruption at IndiGo, aimed at identifying measures to prevent similar episodes. The Indian Express has reported that IndiGo chief executive Pieter Elbers and chief operating officer Isidre Porqueras were issued with show-cause notices by the DGCA to explain the disruption, and given an 8 December deadline to reply. Elbers was scheduled to speak at a UK Aviation Club lunch on 10 December, but the organisers have informed members that he is "unable to attend".


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