Indian Oil, Akasa Air ink pact to explore sustainable aviation fuel supply

Indian Oil Corporation has agreed with Akasa Air to explore the future supply of sustainable aviation fuel (SAF), marking a step towards greening India’s fast-growing aviation sector as airlines and fuel suppliers prepare for a low-carbon transition.

The move comes as India’s aviation market expands rapidly, even as airlines face growing pressure from regulators, investors and customers to reduce their carbon footprint. While SAF adoption in India is still at an early stage, industry players see partnerships such as this as critical to building supply chains and lowering costs over time.

The Letter of Intent was signed at Wings India 2026 in Hyderabad and lays out a framework for collaboration to support Akasa Air’s sustainability goals through the potential sourcing and supply of SAF.


“This LOI reflects our commitment to scaling low-carbon fuels and supporting our customers in their energy transition. By leveraging our expertise across fuel production, supply, and logistics, we aim to play a meaningful role in enabling an early transition to the usage of SAF.” said Shailesh Dhar, Country Head (Aviation Business) at Indian Oil Corporation

Sustainable aviation fuel is widely seen as one of the most viable near-term solutions for cutting lifecycle greenhouse gas emissions from air travel, and is expected to play a central role in the sector’s journey towards net-zero emissions.

Under the agreement, Indian Oil and Akasa Air will work together to assess potential SAF supply volumes, delivery locations and timelines. The collaboration will also evaluate the use of approved sustainable feedstocks and production pathways, in line with global aviation and fuel standards.