President Biden signs new SAF tax credit scheme into law
August 19, 2022
Sustainable aviation fuel will become less expensive for airlines in the USA to purchase under a new SAF tax credit programme included in the US Inflation Reduction Act, which was signed into law by President Joe Biden on 16 August.
From 1 January 2023, a $1.25 per gallon tax credit will be available for SAF blends that reduce lifecycle greenhouse-gas emissions by at least 50%. The tax credit will rise by one cent for each percentage point by which the fuel's lifecycle GHG reduction exceeds 50%, up to a maximum of $1.75 per gallon. The credits will be available in this format until the end of 2024. From the beginning of 2025 until the end of 2027, the Clean Fuel Production Credit will be introduced for all low-carbon transportation fuels including aviation. Under this programme, SAF credits of up to $1.75 per gallon will still be available – up to 75 cents per gallon more than the amount other forms of transport will be eligible to receive. In September 2021, the Biden administration set a "Sustainable Aviation Fuel Grand Challenge", aimed at increasing the production of SAF in the USA to at least 3 billion gallons a year by 2030. The new SAF tax credits are aimed at helping that goal come to fruition. IATA has welcomed the signing into law of the new credit. "We definitely welcome it and believe it will spur SAF production in the US, and thereby support the industry's commitment to net zero by 2050," the association says. The Inflation Reduction Act also includes incentives for the production of clean hydrogen and grants for SAF producers.
Spanish unions call Iberia Express strike
August 18, 2022
Unions representing cabin crews at Spanish airline Iberia Express have announced plans for strike action from 28 August to 6 September in a bid to "unblock" negotiations on a collective labour agreement. In a joint statement, the USO and SITCPLA unions say they have called the 10-day action by 517 crew members at Iberia Express's Madrid base after the carrier refused to improve an offer made to staff. Negotiations on a collective labour agreement that began in December last year have failed to yield agreement on working conditions. USO and SITCPLA accuse Iberia Express of opposing any union proposal and "offering alternatives far from reality". The unions are seeking to link salaries to inflation, especially given that pay rates have been frozen for seven years, they say. In addition they are seeking salary increases of 6.5% against 2021 and the creation of two pay bands with raises of 11% and 4%, plus bonuses and improvements to transport payments. "We are very disappointed with the management of Iberia Express, who has shown no word or respect for the workers who have fought to keep the company afloat while they will receive millionaire benefits this summer," states USO delegate Adriana Escauriaza. "We trust that they will reconsider their proposals and land on the reality that surrounds their workers." Iberia Express, a subsidiary of flag carrier Iberia, is a low-cost short-haul carrier which mostly operates to and from Madrid Barajas airport and has, 19 Airbus A320-family jets in service.
Delta to buy APB split scimitar winglets for 737 fleet
August 18, 2022
Delta Air Lines has entered into agreements with Seattle-based Aviation Partners Boeing (APB) to purchase split scimitar winglets for its Boeing 737-800 fleet and for a number of recently acquired 737-900ER aircraft. The US major also recently agreed to purchase scimitar blended winglets for up to 70 of its 757-200 aircraft, says the blended winglet technology specialist, which is a joint venture of Aviation Partners and Boeing. Both the split scimitar winglets and scimitar blended winglets are upgrades to APB's blended winglets, it adds. Delta has previously purchased and installed APB winglet products on its 737-800, 737-900ER, 757-200, 757-300 and 767-300ER fleets.