IATA outlines concerns regarding double-sided auctions in the e-SAF market

IATA Economics commented (06-Nov-2026) on the double-sided auction (DSA) initiative for electrolytic sustainable aviation fuel (e-SAF) launched by Austria, Germany and Luxembourg under the e-SAF Early Movers Coalition. Under the DSA model, producers compete for long term purchase agreements through a supply auction and fuel buyers bid for shorter term contracts through a demand auction, connected by a government-backed intermediary. IATA outlined the following concerns:

• As airlines typically do not blend or physically supply fuel, buyers in the demand auction are likely to be fuel suppliers or traders. IATA stated: "This creates a risk that intermediary margins and compliance costs will be passed through to airlines";
• IATA described the implementation timelines to secure production by 2030 are "extremely ambitious" and the point of sale requirements as "restrictive".

IATA concluded: "As more countries, including the European Union, consider similar schemes, policymakers should ensure that public support is deployed efficiently, reaches the intended beneficiaries, and promotes a competitive market". [more - original PR]