Air India and Indian Oil Corporation Limited (IOCL) have signed a Memorandum of Understanding (MoU) to collaborate on the supply of Sustainable Aviation Fuel (SAF), marking a pivotal step in India’s transition toward greener skies.
The agreement underscores both companies’ commitment to supporting global decarbonization goals, aligning with India’s national sustainability agenda, and promoting the wider adoption of low-carbon fuels in aviation. For Air India, the MoU strengthens its broader strategy to achieve the International Air Transport Association’s (IATA) Net Zero by 2050 target and comply with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
Building India’s Green Aviation Ecosystem
The MoU was signed by Shailesh Dhar, Executive Director (Aviation), IndianOil, and P. Balaji, Group Head – GRC and Corporate Affairs, Air India, in the presence of AS Sahney, Chairman, IndianOil, and Campbell Wilson, CEO & Managing Director, Air India.
AS Sahney of IndianOil highlighted the milestone:
“This MoU with Air India represents a strategic step in India’s transition to sustainable aviation. With ISCC-CORSIA-certified SAF from our Panipat Refinery, IndianOil is ready to provide a sustainable fuel solution that will help decarbonize air travel and align national growth with global climate goals.”
Air India CEO Campbell Wilson reaffirmed the airline’s long-term sustainability roadmap:
“Through this collaboration with IndianOil, Air India is committed to supporting the Government of India’s initiatives for sustainable development in aviation, while advancing our own journey towards IATA’s Net Zero by 2050 target.”
Fleet Renewal and Operational Efficiency
Air India’s fleet modernization program, which includes an order for 570 new aircraft, is expected to give the airline one of the most fuel-efficient fleets globally. The carrier is also expanding non-stop city-pair services to reduce overall emissions and adopting advanced route optimization systems to improve flight efficiency.
In addition, Air India has partnered with India’s Council of Scientific and Industrial Research and the Indian Institute of Petroleum to support research and deployment of SAF. Other green practices include reducing single-use plastics, adopting lightweight in-flight materials, implementing single-engine taxiing, and using autonomous electric vehicles for towing to save fuel.
National Push for SAF
India has set an ambitious target of achieving 5% SAF blending by 2030, with efforts underway to establish domestic SAF supply chains. IndianOil recently became the first Indian company to receive ISCC-CORSIA certification for SAF production at its Panipat Refinery, confirming its capability to produce fuel that meets stringent international standards for lifecycle carbon emissions.
A Path to Decarbonized Aviation
By combining Air India’s operational scale with IndianOil’s certified SAF production, the collaboration sets a benchmark for the industry and reinforces India’s role as a front-runner in sustainable aviation. The initiative is expected to support international flights in meeting CORSIA obligations while ensuring a reliable and transparent supply of sustainable fuel.
Together, Air India and IndianOil are not only shaping the future of Indian aviation but also contributing to the global shift towards cleaner, more responsible air travel.
