Towards greener skies

: customer perspectives on sustainable aviation fuels (SAF) in the European market

Abstract

Global aviation significantly contributes to climate change, representing about 2.5% of global emissions. Sustainable Aviation Fuels (SAF) offer a promising alternative, emitting up to 80% less CO2 than conventional jet fuel. However, SAF prices are expected to surpass fossil kerosene prices, leading to cost increases for passengers. This thesis studies how the introduction of SAF influences key customer behavior factors within the aviation industry in the European market and whether incentives can effectively encourage greater adoption. A qualitative content analysis using Gioia’s methodology was conducted based on 15 semi-structured interviews with aviation industry experts, and key findings were derived. Utilizing the insights gathered from the expert interviews, a survey was carried out among the general public with 261 participants. The expert interviews confirm the extant literature regarding the significance of SAF and the need for new strategies to effectively engage customers during market ramp-up. The survey results demonstrate that key factors positively influence willingness to pay (WTP) for SAF. Factors include environmental awareness, consideration of environmental impacts when booking, previous compensation measures, frequency of flying, gender, and age (linked to income). Incentives can further increase WTP for SAF, most notably for seats with extra legroom and proportionally, most on short-haul flights. The results identify crucial elements for achieving more carbon-neutral flying with SAF from the customer's perspective. They illustrate how incentives can create a win-win scenario, benefiting both airlines and customers.

Date of Award	3 Jul 2024
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Peter V. Rajsingh (Supervisor)