Air India and Indian Oil sign MoU for supply of sustainable Aviation Fuel

• As part of its strategy to achieve the IATA Net Zero by 2050 target, Air India is actively pursuing initiatives in operational efficiency, low-carbon emissions, and now, SAF
• Collaboration builds upon IndianOil’s recent milestone of becoming the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat Refinery

GURUGRAM, 19 August 2025:Air India and Indian Oil Corporation Limited (IOCL) today signed a Memorandum of Understanding (MoU) for the supply of Sustainable Aviation Fuel (SAF), marking a major step towards a greener future for Indian aviation. Under the MoU, Air India, a Tata Group company, and IOCL have outlined their shared commitment to promote the adoption of low-carbon fuels in aviation, support global decarbonization goals, and contribute to the transition towards more sustainable air transport operations.

As part of its broader strategy to achieve the IATA Net Zero by 2050 target and comply with CORSIA obligations, Air India is actively pursuing initiatives in operational efficiency, low-carbon emissions, and now, SAF. This MoU marks a significant step in expanding its green aviation portfolio.

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, and other officials.

AS Sahney, Chairman, IndianOilsaid: “The signing of 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 decarbonize air travel. Partnering with India’s flagship carrier, we are aligning national growth with global climate goals and setting a benchmark for the industry.”

Campbell Wilson, CEO & Managing Director, Air Indiasaid: “Through this MoU with IndianOil, 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.”

Air India’s fleet renewal plan, with 570 new aircraft on order, will enable the airline to operate one of the lowest carbon emitting fleets in the world and its plans to establish more non-stop city-pairs will result in less emissive flights and itineraries. Air India has also adopted market-leading flight planning and optimisation systems, including upgrading its route planning software and coordination with air traffic management, and has entered into an MOU with India’s Council of Scientific and Industrial Research and the Indian Institute of Petroleum to collaborate on the research, development and deployment of SAF.

Over the last few years, Air India has adopted several green practices, including reducing single-use plastics and using lighter material for cutlery and dishes, and is optimising processes such as more frequent engine and airframe washes, implementing single-engine taxiing and autonomous-EV towing to save jet fuel.

These efforts align with India’s broader push for green aviation, which includes India’s target of 5% SAF blending by 2030 and the development of SAF supply chains across the country.

This collaboration builds upon IndianOil’s recent milestone of becoming the first Indian company to receive ISCC CORSIA certification for SAF production at its Panipat Refinery. The certification, granted under ICAO’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), establishes IndianOil’s capability to produce SAF that meets the most stringent international sustainability and lifecycle carbon emission standards.

By integrating certified green fuels into commercial operations, IndianOil and Air India are together reinforcing India’s position as a front-runner in sustainable aviation and energy transition.

Through this MoU, IOCL and Air India aim to collaborate on the supply of SAF to meet CORSIA targets for international flights, ensuring a reliable, transparent, and sustainable fuel supply to support both companies’ environmental goals.

About Air India group

The Air India group – comprising of full-service global airline Air India and low-cost regional carrier Air India Express – is spearheading a new era of Indian aviation. The Air India story began in 1932 when JRD Tata piloted the airline’s inaugural flight and opened the skies for aviation in India. Today, Air India group employs more than 30,000 people, operates over 300 aircraft and carries customers to 55 domestic and 48 international destinations across five continents.

Returning to the Tata Sons in 2022 following 70 years under Government ownership, Air India group is in the midst of a five-year transformation program, Vihaan.AI. As part of the transformation, Air India has placed an order for 570 new aircraft. In 2024, sister airlines Air Asia India and Vistara were successfully merged into Air India Express and Air India, respectively, and the Airline opened South Asia’s largest aviation training academy. A new flying school is scheduled to open in 2025, and construction of a greenfield maintenance base, to be operational in 2026, is underway. In addition to receiving new aircraft, all existing aircraft are progressively undergoing a full interior refit.

With transformation underway across all facets of the business and India’s rich legacy of hospitality, Air India is committed to being a world class global airline with an Indian heart.

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