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RIYADH: The launch of the Kingdom’s strategic plans to change into a world tourism and logistics hub has added a brand new impetus to its fast-evolving aviation business, which may be bolstered by investing in progressive applied sciences, steered a report issued by the King Abdullah Petroleum Research and Analysis Heart.
Chatting with Arab Information, Abdulrahman Alwosheel, a analysis affiliate on the Riyadh-based heart and co-author of the report, mentioned as a result of its strategic geopolitical location, the Kingdom has all of the potential to change into a gateway connecting Asia Pacific to Europe and America, which may also assist it obtain its tourism objectives as envisaged in Imaginative and prescient 2030.
“There are a number of areas the place Saudi Arabia can focus to boost its aviation business by enhancing infrastructure, rising connectivity, investing in innovation and expertise, growing a talented workforce, and selling tourism,” mentioned Alwosheel.
The researcher mentioned following the choice to permit vacationer visas the Kingdom has made unbelievable progress within the tourism sector.
The KAPSARC report mentioned development within the Kingdom’s aviation sector is essential to attaining the objectives outlines in Imaginative and prescient 2030. Saudi Arabia’s Nationwide Tourism Technique goals to draw 100 million guests by 2030 and enhance the tourism sector’s contribution to the gross home product to greater than 10 %.
Then again, Saudi Arabia’s Nationwide Logistics Technique, launched by Crown Prince Mohammed bin Salman in 2021, goals to place the Kingdom as a world logistics hub connecting three continents and enhance transportation providers. The technique additionally seeks to enhance the capabilities of the Kingdom’s air cargo sector by doubling its capability to greater than 4.5 million tons by 2030.
Alwosheel mentioned additional enchancment in home transport might additionally play a vital function in elevating the tourism sector in Saudi Arabia, which is already progressing steadily in comparison with its regional counterparts.
“Not like the neighboring nations, similar to Qatar, Bahrain, and the UAE, during which home transport wants are extra restricted, in Saudi Arabia, home transport can play a significant function in supporting development by selling and growing home tourism, together with the event of aviation infrastructure and providers,” he added.
The researcher identified that strategic alliances and joint ventures involving air carriers, producers, airports, and authorities companies might allow the aviation business to leverage particular person belongings and abilities to attain the Kingdom’s objectives.
Sustainability and challenges
The report emphasised the significance of sustainability within the general growth strategy of the aviation sector within the Kingdom. The suppose tank mentioned surprising circumstances brought on by the COVID-19 pandemic similar to a drop in demand, disruption of the airline business, and the resultant monetary losses served as a wake-up name to advertise sustainable pathways.
Alwosheel famous that the price issue is without doubt one of the main challenges the aviation business ought to handle whereas propagating using sustainable aviation gasoline.
“SAF is costlier than conventional fossil-based fuels, which might create a monetary burden for airways. Nonetheless, with rising demand and manufacturing, technological maturity, feedstock availability, and variety, the price of SAF is predicted to lower,” mentioned Alwosheel.
In response to the Worldwide Air Transport Affiliation, the manufacturing of sustainable aviation gasoline is estimated to fulfill simply 2 % of the sector’s wants by 2025.
SAF is produced in tiny portions from feedstocks similar to cooking oils and animal waste and prices two to 5 occasions greater than conventional jet fuels.
Alwosheel added that SAF will change into extra price aggressive if governments, together with clients and suppliers of SAF and airports work collectively and devise methods to advertise technological developments within the gasoline’s manufacturing. He additionally identified that integrating SAF manufacturing vegetation with present oil and gasoline industries might assist scale back capital prices.
“SAF manufacturing have to be aligned with the area’s circumstances for the reason that manufacturing of biofuels might be restricted. Nonetheless, integrating it with the present industries (petrochemical) may also help scale back capital prices in growing services devoted to producing SAF by contemplating co-processing pathways,” the researcher mentioned.
He mentioned one other problem for SAF uptake is the strict certification requirements to make sure that it’s sustainable and doesn’t hurt the atmosphere.
With continued funding in analysis and growth, rising services for manufacturing and availability, and growing a strong certification system, the aviation business can efficiently embrace SAF.
Abdulrahman Alwosheel, Analysis affiliate at King Abdullah Petroleum Research and Analysis Heart
“The event of a certification system that’s universally acknowledged may be difficult. Consequently, with continued funding in analysis and growth, rising services for manufacturing and availability, and growing a strong certification system, the aviation business can efficiently embrace SAF,” mentioned Alwosheel.
The ‘Passenger Load Issue’
Passenger Load Issue is “the share of obtainable seating capability stuffed with passengers, whatever the seating capability designation made by the airline or the cabin format.”
In response to the KAPSARC report, PLF is instrumental in assessing the profitability of airways because it signifies that an airline has bought most of its out there seats, which permits it to divide its prices among the many whole passengers carried.
Andres Guzman, a fellow researcher at KAPSARC, mentioned that Saudi Arabia’s PLF has considerably improved, highlighting the Kingdom’s development within the aviation sector.
“In actual fact, the decrease PLF dilutes the advantages that plane producers have made within the final years in enhancing gasoline effectivity by contemplating new expertise engines when the efficiency of the aviation sector is expressed when it comes to the variety of passengers as an alternative of (the variety of ) seats out there,” mentioned Guzman.
In response to the researcher, making the aviation sector sustainable requires concerted efforts from all stakeholders together with airline carriers, plane producers, customers, airports, and governments.
Guzman mentioned regardless of monetary challenges, plane fleet renewal has significantly improved the efficiency of the aviation sector, as newer plane are extra gasoline environment friendly, they usually supply improved security and diminished upkeep prices.
“As sustainability has change into a world concern, governments and financiers might foster a smoother transition of fleet renewal packages by providing monetary incentives in compliance with laws on emissions discount,” he mentioned.
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