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Biofuels Fuel Purchasing Perspective Gavin Fernandez. Fuel Management. Our role in Jet Fuel purchasing Supplying Cathay’s fleet with sustainable jet fuel. Our Role. Fuel 40% of airlines’ spend (Cathay, Dragonair & Air HK) 82 airport destinations Team split regionally
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Fuel Management • Our role in Jet Fuel purchasing • Supplying Cathay’s fleet with sustainable jet fuel
Our Role • Fuel 40% of airlines’ spend (Cathay, Dragonair & Air HK) • 82 airport destinations • Team split regionally • Focus on supply chain intelligence • Focus on supplier intelligence • Supplier Corporate Sustainability • Environment LTAG (Long term Action Group) • Purchasing “Best in Class” development
What is LTAG? • Looking up to 50 years ahead • Make Cathay environmentally responsible long-term • Proactively address our CO2 emissions • Activities: • Biofuel • Fuel saving initiatives • Modern ultra-efficient aircraft fleet • Initiatives on the ground (vehicles, buildings, processes) • Suppliers engaged – responsible supply chain • Interface with Swire
Biofuel Engagement • SAFUG (CX driving for Asian SAFUG) • Biomass growers • Biofuel producers • Urban waste to biojet producers • University researchers • Aircraft & engine manufacturers • Energy (Oil) companies • Airline partners (e.g. Air China) • Cathay dedicated Biofuel Manager
Challenges • Scalability – securing a regular supply in sufficient quantities to really make a difference & meet economic economies of scale • Sustainability – ensuring that any feedstock used for aviation biofuel is truly sustainable • Economic feasibility – obtaining biofuels at a price which is comparable or competitive with the current cost of today’s jet fuel
How we will make a difference • Cathay’s commitment to biofuel • Cathay Pacific & Swire Group • Uniquely positioned to enter entire biofuel supply chain • Upstream opportunities (agriculture, shipping, refining/blending) – Asian focus • Unique Hong Kong Jet Fuel Facility • Global Role Model • Ability to receive & store biofuel