The Cathay Group and Airbus have unveiled a landmark joint investment agreement worth up to US$70 million (HK$545 million) to accelerate the development and production of sustainable aviation fuel (SAF) across Asia and globally.
The partnership was announced in Hong Kong on the sidelines of the IATA World Sustainability Symposium during a ceremony hosted by Cathay’s Chief Operations and Service Delivery Officer, Alex McGowan, alongside Airbus President Asia Pacific, Anand Stanley.
The collaboration aims to identify, evaluate, and invest in promising SAF projects that can scale production capacity toward the year 2030 and beyond.
Projects selected under this partnership will be assessed based on their commercial viability, technological maturity, and long-term offtake potential.
This initiative underscores the shared commitment of two aviation industry leaders to promote widespread SAF adoption, which is critical to achieving decarbonisation targets within the aviation sector.
Cathay’s McGowan emphasised the importance of SAF in the industry’s sustainability strategy, stating: “SAF remains the most important lever for Cathay and the wider aviation industry to drive toward our common decarbonisation goals.
“This co-investment partnership with Airbus underscores our commitment to supporting a more scalable SAF industry in the near term.”
McGowan explained that the initiative aligns with their wider approach of investing in technology and production capabilities that have the potential to transform the aviation sector over the long term, including their involvement in the newly established oneworld BEV SAF Fund.
At the same time, they are actively increasing the use of SAF today by partnering with organisations that share their commitment.
Anand Stanley, Airbus President Asia Pacific, highlighted the innovative nature of the collaboration, noting: “This agreement reflects the shared commitment of Airbus and Cathay to make a real difference.
“The production and distribution of affordable SAF at scale requires an unprecedented cross-sectoral approach.
“Our partnership with Cathay is a concrete example of how we catalyse production in the most suitable locations to serve our customers.”
Beyond funding, the partnership also seeks to influence supportive SAF policies throughout Asia, recognising the region’s vast potential in feedstock supply, production capacity, and vibrant aviation markets.
Together, Cathay and Airbus aim to leverage their global expertise in policy advocacy, making SAF more accessible and affordable in key Asian markets.
Complementing this new collaboration, Cathay recently became a launch investor in the oneworld BEV SAF Fund, a collective initiative involving other oneworld alliance airlines and Breakthrough Energy Ventures, the climate investment firm founded by Bill Gates.
The fund targets emerging SAF technologies with transformative potential to scale and reduce costs.
The Cathay-Airbus joint investment focuses on mature SAF projects, aiming to accelerate availability in the near to medium term.
The Cathay Group and Airbus share a long-standing partnership dating back to 1989, when Cathay placed its first Airbus aircraft order.
Currently, Cathay’s fleet includes more than 85 Airbus aircraft with an additional 70+ on order, reflecting the ongoing collaboration between the two companies.
