Airlines Want Alternative Fuels to surviveOctober 2009
"We are working with relevant government agencies and also with agricultural interests, universities, independent researchers and the military... We're willing to step up and be the buyers," United CEO Glenn Tilton.
US commercial airlines and military aircraft would make a strong long-term market for alternatives to jet fuel, said Glenn Tilton, chief executive of UAL and its United Airlines unit.
Speaking at an energy conference on Wednesday, Tilton said commercial airlines remain financially fragile and do not have the cash to or credit capacity to fund development of new fuels infrastructure.
"We're willing to step up and be the buyers," he said of alternative fuel sources that could act as a cleaner burning hedge against expensive crude oil resources.
US airlines paid USD$58 billion for fuel in 2008, an increase of USD$16 billion over the previous year, industry figures show.
Airlines consume between 18 and 20 billion gallons of jet fuel annually.He said airlines are committed to seeing the expansion of specifications for jet fuel options from renewable and non-renewable sources.
"We are actively supporting and seeking funding for this work. We are working with relevant government agencies and also with agricultural interests, universities, independent researchers and the military," Tilton said.
Earlier this year, the US Energy and Agriculture departments announced USD$25 million in research loans and grants for aviation and other biofuels.
Tilton said oil price volatility has made investors and markets "nervous about committing capital" to the development of alternative fuels.
"With government bridging, private investment can take over," he said.
Back to Index
Move to Top 
