Air India, IndianOil ink pact for sustainable aviation fuel supply

Air India and Indian Oil Corporation Limited (IOCL) on Tuesday signed a memorandum of understanding (MoU) for the supply of Sustainable Aviation Fuel (SAF), marking a decisive step towards India’s green aviation transition.

“This MoU with Air India represents a strategic step in India’s transition to sustainable aviation. With our ISCC-CORSIA-certified SAF from Panipat, IndianOil is ready to provide a sustainable fuel solution that will help decarbonise air travel. Partnering with India’s flagship carrier, we are aligning national growth with global climate goals and setting a benchmark for the industry,” said AS Sahney, chairman of IndianOil.

The agreement was signed by Shailesh Dhar, executive director (Aviation), IndianOil, and P Balaji, group head – GRC and Corporate Affairs, Air India, in the presence of Sahney and Campbell Wilson, CEO & managing director of Air India.

Wilson said: “Through this MoU, Air India is committed to support the Government of India’s initiatives to promote sustainable development in the aviation sector and to further its own sustainability goals to achieve the IATA Net Zero by 2050 target.”

The partnership comes as Air India sharpens its sustainability portfolio. The airline, which has placed orders for 570 new aircraft, aims to operate one of the world’s lowest carbon-emitting fleets. “Alongside its fleet renewal, Air India is introducing more non-stop city pairs to reduce emissions, upgrading route planning and optimisation software and working closely with air traffic management to cut fuel burn,” said an airline official.

Air India has also entered into a research collaboration with the Council of Scientific and Industrial Research and the Indian Institute of Petroleum to develop and deploy SAF. On the ground, it has rolled out a series of green practices, including reducing single-use plastics, replacing inflight cutlery and dishes with lighter materials, carrying out more frequent engine and airframe washes, adopting single-engine taxiing, and deploying autonomous EV towing to conserve fuel.

The broader push aligns with India’s national target of 5 per cent SAF blending by 2030. Indian Oil has already taken the lead, becoming the first Indian company to secure ISCC CORSIA certification for SAF production at its Panipat refinery. The certification, issued under ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation, validates that the fuel meets the toughest international sustainability and life cycle carbon standards.

“Through the MoU, Indian Oil and Air India will collaborate on building a reliable SAF supply chain for international flights, meeting CORSIA obligations while reinforcing India’s ambition to become a frontrunner in sustainable aviation,” said the airline official.