Air New Zealand and Virgin Australia Team Up for Locally Produced Biofuel Project
Air New Zealand and Virgin Australia are teaming up to explore options for locally produced biofuel that can fly their planes in a more environment friendly manner.
They have issued a "request for information" to the market to explore the prospects of locally-producing aviation biofuel.
Environment friendly fuel is a focus in many countries and according to Air New Zealand's chief flight operations and safety officer, Captain David Morgan; this move is a part of the carbon management program initiated by the airline.
He said, "By working in partnership with our alliance partner Virgin Australia we hope we can stimulate the local market, drive innovation and investment and potentially uncover a sustainable biofuel supply suitable for our respective operations."
However, Irene King, an aviation consultant says biofuels help when fuel is costlier and with current situations with cheap price of oil, it does not make much sense financially. Yet biofuel holds promise for the future. She said, "Really, biofuel only works when the price of oil is US$120 (NZ$178) a barrel." With oil currently below its US$40 does not make sense if considered by price but for airlines that are conscious about their environmental impacts investing in biofuels is an effort towards their risk-management plans.