Turkish Airlines joins SAFFA Fund

Photo: Burnham Sterling & Company LLC

Turkish Airlines announced July 21 that it has signed an agreement to participate in the SAFFA Fund, an investment fund managed by Burnham Sterling Asset Management LLC (BSAM) with an objective to accelerate the production of sustainable aviation fuel (SAF), in line with its long-term growth strategy, sustainability-focused targets and supply-chain security vision.

Established in December 2023, the SAFFA Fund—which stands for the Sustainable Aviation Fuel Financing Alliance—was launched to increase the production capacity of SAF and support the carbon-reduction targets of the aviation sector.

While investing in SAF projects that have reached technological maturity, the SAFFA Fund aims to contribute to the development of sustainable fuel supply through a diversified portfolio structure across different production technologies and geographical regions.

Managed by BSAM, with Airbus serving as the anchor investor, the fund’s participants also include leading airlines and prominent global aviation and financial institutions.

Turkish Airlines’ participation in the fund has not only supported access to SAF but also enabled Turkey’s national flag-carrier to position itself closer to investment, feedstock development and technology projects that shape the future of the sector, further consolidating its strategic position in line with its sustainable growth and supply-security targets in aviation.

Furthermore, this investment deepens the airline’s shared sustainability objectives with Airbus, within the scope of sustainability activities and supply security.

“With this investment in the SAFFA Fund we aim not only to contribute to the development of the SAF ecosystem but also to maintain our active role in supporting innovative projects that shape the future of the industry,” said Levent Konukcu, the deputy general manager of Turkish Airlines. “The strong international collaborations established through the SAFFA Fund will enable us to reinforce our supply security and contribute to the transformation of the global aviation sector while supporting our access to sustainable aviation fuels.”

Michael Dickey Morgan, the executive managing director of Burnham Sterling Asset Management, added, “The SAFFA Fund was built to channel capital into SAF projects across a mix of investments and geographies. Turkish Airlines’ investment adds scale to that strategy and evidences the confidence the fund’s participants have in this asset class. Turkish Airlines’ commitment to the SAFFA Fund is a strong signal that the world’s leading carriers see this transition as essential for the long term. We’re proud to help drive that progress forward.”

SAFFA is an investment fund in which Airbus, Air France-KLM Group, Associated Energy Group, BNP Paribas, Burnham Sterling, CMA-CGM, Mitsubishi HC Capital and Qantas Airways co-invested to accelerate the production of SAF.

The corporate partners worked with investment manager Burnham Sterling Asset Management to establish SAFFA.

The commitment from the eight partners amounts to an aggregate of approximately USD$208 million.