AirAsia may become the first airline in Malaysia to implement a mandatory carbon fee. (Photo: AirAsia)
Malaysia's low-cost airline, AirAsia, plans to impose a mandatory carbon fee on passengers starting next year, pending approval from the respective countries on its routes. If successfully implemented, this will be a first for a Malaysian national airline. However, specific details regarding the fee structure are still not available.
AirAsia’s mandatory carbon fee on ASEAN routes
CEO Tony Fernandes stated at a press conference on Sept. 26 that the airline will not give passengers the option to opt out of paying the carbon fee, emphasizing that "if it becomes an option, no one will pay."
In March, the Malaysian government announced it would amend consumer regulations to allow airlines to decide whether to charge a carbon fee. Currently, only Malaysia Airlines offers passengers the option to pay an additional fee to offset their flight's carbon emissions.
This is not the first time Fernandes has proposed the idea of charging a carbon fee. He previously announced plans for this initiative in April, and it is now progressing, with the airline seeking approval from other ASEAN countries, including Thailand, Indonesia, the Philippines, and Cambodia, although the impact on routes to and from Taiwan remains unclear.
AirAsia develops SAF, invests in renewable energy
As the aviation industry faces significant challenges in reducing carbon emissions, AirAsia is exploring sustainable aviation fuel (SAF) development and investing in renewable energy. On Sept. 19, the airline announced an expanded partnership with Airbus to explore the potential for developing SAF in Southeast Asia, with the possibility of exporting to other countries in the future.
AirAsia partners with Airbus to advance research into SAF initiatives that lower carbon emissions in the ASEAN region. (Photo: AirAsia)
As AirAsia expands its flight operations, the pressure to reduce carbon emissions may increase. In addition to charging passengers a carbon fee, Fernandes has indicated plans to invest in renewable energy projects in Sabah, which could generate carbon credits to offset emissions. Potential projects under consideration include wind power, sustainable fuel, and reforestation initiatives.
AirAsia is the largest low-cost airline in Asia. In its first independent sustainability report released in May, the airline stated that its carbon intensity metrics for 2023 were lower than those of 2019. The airline achieved its lowest records in both grams of CO2 per available seat kilometer (gCO2/ASK) and grams of CO2 per revenue passenger kilometer (gCO2/RPK), resulting in a reduction of 129,469 tons of carbon emissions for the year, equivalent to saving 41,000 tons of fuel and $40 million in fuel costs.
Source: The Edge Malaysia、Air Asia、Malay Mail
