In a recent letter to shareholders, Tan Sri Tony Fernandes, CEO of Capital A, revealed plans to introduce a sustainability fee in airfares soon. This initiative comes as the low-cost carrier prepares to merge with AirAsia X Bhd (AAX), aiming to prioritize investments in carbon offset projects.

Specific details regarding the sustainability fee were not disclosed, however, he outlined a threefold approach to sustainability, focusing on profitability maintenance, destination preservation through tourism management, and achieving carbon neutrality by 2050 through carbon credits, technology advancements, and fuel efficiency.

  
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Acknowledging the significance of sustainable aviation fuel (SAF), Fernandes highlighted current challenges hindering its widespread adoption, including cost and logistical complexities.

The announcement comes amid discussions within the government regarding additional fees to cover airlines' carbon emissions. Transport Minister Anthony Loke previously indicated openness to such fees, which could support initiatives like purchasing sustainable aviation fuel or offsetting emissions through carbon credits.

  
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However, regulatory adjustments may be necessary before airlines can implement these fees, as outlined under the Malaysian Aviation Consumer Protection Code 2016 by the Malaysian Aviation Commission.

What do you think of Tony Fernandez's newest initiative? Comment below.

Source: The Edge Malaysia