Aviation: an ally for the development of Latin America and the Caribbean

Bogota March 14, 2024 - Colombia celebrates the second edition of the ALTA Fuel & Sustainability Conference, an event organized by the Latin American and Caribbean Air Transport Association (ALTA) that brings together more than 200 experts, airline industry leaders and government authorities to discuss the challenges and opportunities related to the production, distribution and use of conventional and sustainable fuels in aviation in the region.

During his opening speech, José Ricardo Botelho, Executive Director & CEO of ALTA, said that the aviation industry is a key driver of the Latin American and Caribbean economy: "it represents 8% of the regional GDP and generates 17 million jobs. Aviation has a profound social impact and therefore should be considered as an essential sector in the State agendas to work collaboratively to promote it in a safe, efficient, sustainable and sustainable manner. Aviation is a fundamental gateway for our countries and the safest and most efficient means of transportation for the population."

"Aviation cannot be seen as a luxury, but as an ally for development. Nor should it be targeted with unrelated taxes, disproportionate costs, inefficient regulations that hinder its development," emphasized ALTA's CEO, who highlighted the historic record reached by the aviation industry in the region in 2023, with 451.6 million passengers flying in the region, a growth of 13.3% compared to 2022.

At the beginning of the year, passenger traffic has also shown good signs, although there is much work to be done. In January 2024, Colombia experienced a 30% growth in international air traffic compared to January 2023, which translates into 1.9 million additional passengers.

However, domestically, a 2% increase over 2023 was observed, reaching a total of 2.8 million passengers, a figure that indicates a slight slowdown compared to the previous month, when 4% growth was recorded.

During the conference, a video was presented showing the positive impact that aviation is having in Colombia. From 2002 to 2023, there has been a notable change in the travel habits of Colombians. In 2002, approximately 92% of the 107.7 million passengers that moved within the country opted for land transportation by bus, while only 8% used air transportation. But, by 2023, these numbers changed significantly: of the 142 million passengers, 79% chose to fly.

Advances in air transport accessibility are also reflected in the change in the cost of airline tickets. Between 2012 and 2022, the cost of an air ticket has decreased by around 19%, from 45% to 37% of the minimum wage, facilitating access to air travel for a greater number of Colombians. Despite the tax burden associated with each ticket, air travel remains an attractive option due to its efficiency and speed: Colombians can reach their destination 15 to 20 times faster than by bus.

The conference's opening ceremony was attended by Lina Hauri, Colombia's Deputy Director of Transportation, who reiterated the ministry's support for the industry: "Let's not wait for the future, we must develop all the necessary technologies now because the world is already demanding it. You have a very big challenge and you have the Colombian Ministry of Transportation to support you".

"Transforming is in the doing. Doing means advancing on the short and medium term roadmap. What better than the debate to build a change and look at the medium term, looking at public policy and regulation," said Dr. Sergio Paris, Director General of Aerocivil in his speech.

The future of SAF is now

Pedro de la Fuente, IATA External Relations and Sustainability Manager, moderated the panel called The Future of SAF is Now. and said, "Today SAF represents 5% of global demand. We need to significantly multiply that production to achieve the targets. We are at an existential stage for humanity where the transition must occur."

On the panel, Liliana Tovar, Vice President of Aviation and Marine at Terpel S.A., shared three key points for moving forward on sustainable aviation fuels (SAF). These are: technical and feedstock feasibility, global regulations (as it is a highly regulated industry) and available infrastructure.

Carolina Betancourt, BioD's Biorefuels Manager, pointed out that "every week a new AFS project is announced around the world. We hope that there will be at least one plant under construction, understanding that sustainability is the most important thing and that we cannot lose focus; it is an exercise in resilience. If we already did it with biodiesel and ethanol, we can do it with SAF."

Randy Letang, president and CEO of SGP BioEnergy, offered a critical view: "The concept of sustainability from day one is a paradox, a path to frustrations. It makes more sense to evaluate where we are today, where we are going to focus, what the numbers look like, and then bring in the knowhow to address a future goal. Constant evaluation is key.

On the other hand, Luis Osegueda, Aviation Sales Manager of Chevron, proposes more actions: "In 2025, when we meet again, I would like to see more clear rules of the game, incentives that are not defined to promote investment, you cannot start building a plant if there is no certainty, clarity in the rules of the game".

The activity, which runs until Thursday 14 at the Hilton Corferias Hotel, has a full agenda that includes panel discussions, updates on the jet fuel market, airport infrastructure, carbon offsetting, among other topics relevant to the industry.

Watch the video here: https://www.linkedin.com/posts/alta---latin-american-%26-caribbean-air-transport-association_bogotaer-aviaciaejn-activity-7173444520490033153-q6WY?utm_source=share&utm_medium=member