Akasa Air Tops The Punctuality Chart In March; SpiceJet At The Bottom

According to information from the Ministry of Civil Aviation (MOCA), SpiceJet, which has been struggling with a cash flow issue, had the worst on-time performance (OTP) in March of this year at 76.748%. On the other hand, according to the MOCA data cited by the Business Standard, the new airline Akasa Air had the best OTP among all carriers in March at 94.539%.

SpiceJet noted that it "has been striving hard to continuously improve performance on all aspects, including our OTP" and that it is "hopeful" that there would be further progress in the upcoming time despite its refusal to comment on the government data.

Akasa's Punctuality

The airline achieved an OTP of 100% on the first, second, and fourth days of the month (1st, 22nd, and 28th). The co-founder and senior vice president for operations at Akasa Air, Neelu Khatri, told Business Standard that it was too soon to "congratulate ourselves" but detailed how the company had taken proactive steps to instil "dependability" into its flight network and operations. “We routinely run time and motion studies to ensure that our processes run with stability, and we train our employees to deliver on these processes precisely. Furthermore, to maintain these stringent standards that we have set for ourselves, we continuously analyze complex operations data to identify improvements that we can make to our processes.”

Akasa Air now flies to 17 cities, operating over 900 weekly flights across India, and will likely start overseas flights later this year. There’s another airplane order on the horizon, with the airline’s chief saying it will be far bigger than its first order of 72 Boeing 737 MAXs.

Other Carriers' Performance

IndiGo came in second with an OTP of 92.4%, while Vistara and Go First had almost identical OTPs of 84.677% and 84.671%, respectively. The other two airlines under the Tata Group, AirAsia India and Air India, had the second lowest and third lowest OTP, respectively, a massive difference from last year when AirAsia India consistently topped the charts for months, and Air India, too, showed marked improvement.

What is OTP?

OTP, short-hand for On-Time Performance, is a widely accepted method of understanding punctuality for different modes of public transport, not just aviation. It provides a standardised means of comparing how well one service provider operates according to its published schedule compared to another.

In aviation, an airline departure or arrival that is considered on time has a departure or arrival that occurs within 15 minutes of the scheduled time. The schedule is the basis of the airline's proposition to its customers. Inevitably, external disruptions such as adverse weather conditions, congestion, incidents, and industrial action can cause delays for operators but in general, flight OTP can be influenced by the performance of airlines and airports. Therefore, airline On-Time Performance is widely used as a powerful key performance indicator for airlines and airports and is also a potential service differentiator for marketing the brand to air travellers.

(With Inputs from Business Standard)

The aviation sector is about to undergo huge growth, with the global airline fleet anticipated to grow by one-third over the next decade. The increased demand for air travel throughout the world, as well as continued technological breakthroughs in aircraft design and manufacture, are driving the expansion. The worldwide airline fleet has grown to 98% of its pre-pandemic level, and it is expected to rise by another one-third by 2033.

Factors Influencing the Global Airline Fleet Expansion

Many causes are contributing to the expansion of the global airline fleet. One of the primary causes is rising demand for air travel, particularly in emerging markets. According to the International Air Transport Association (IATA), air passenger traffic is predicted to more than quadruple by 2037, with Asia Pacific accounting for more than half of all additional passengers. The continual developments in aircraft design and manufacture are another element fueling the rise in the global airline fleet. Manufacturers are investing extensively in R&D to manufacture more fuel-efficient, environmentally friendly, and technologically sophisticated aircraft. Boeing's 787 Dreamliner and Airbus' A350 XWB, for example, are designed to use less fuel and release fewer greenhouse emissions than their predecessors.

The Next Decadal Forecast

According to consulting company Oliver Wyman's 2023–2033 Global Fleet and MRO Market Forecast, the total number of commercial jets is predicted to climb from over 27,400 to more than 36,000 aircraft in ten years, representing a 33% increase. "We foresee a record number of aircraft deliveries over the next ten years, notwithstanding current supply chain bottlenecks that may make meeting this year's objectives difficult," according to the report, which was released on April 12. By 2033, over 20,600 new production aircraft are expected to be delivered globally, considerably exceeding the retirement of older planes. Nonetheless, the authors of the research admit that greater production objectives from Boeing and Airbus "would be impossible to accomplish even if supply systems were running properly." Aviation's worldwide aftermarket, which offers maintenance, repair, and overhaul (MRO) services to keep the fleet flying, is forecast to expand by 22% this year, hitting $94 billion, only 2% less than its high in 2019. It will reach $125 billion by 2033, with a compound annual growth rate of 2.9%. MRO demand is expected to grow 18% by 2022.

Furthermore, it is expected that a record number of aircraft deliveries will be made over the coming decade, notwithstanding current supply chain bottlenecks that may make meeting this year's objectives difficult. However, despite soaring flying rates and a year of delays and cancellations in several of the world's most important markets, travellers appear unfazed. By December, worldwide passenger traffic, including domestic and foreign, had surpassed 82% of the total for 2019. This is the highest amount recorded since the outbreak. By 2033, the worldwide fleet of narrowbody aircraft is predicted to expand from 16,400 to around 23,400, while the total number of widebodies will increase from 5,500 to approximately 6,900. India is now the fastest-growing market for commercial jets, with the study's authors citing Air India's recent purchases of hundreds of Boeing and Airbus planes as proof of the country's sky-high demand. The number of regional jets in North America and Western Europe is expected to fall from 2,100 to around 1,700 over the forecast period, with countries such as France recently abandoning air travel as a mode of regional transportation, a trend that could spread to the rest of Europe, according to Oliver Wyman.

The Aviation Industry's Possible Impact

The anticipated growth in global airline fleet size has various possible consequences for the aviation sector. For starters, it will open up new prospects for aircraft makers, as airlines would need to acquire new planes to fulfil rising air travel demand. According to a survey by aviation consultancy firm CAPA Centre for Aviation, airlines throughout the world would need to acquire around 40,000 new aircraft by 2038, at a cost of around $6 trillion. Second, the worldwide airline fleet expansion will create new employment opportunities across the aviation industry, from pilots and flight attendants to engineers and maintenance personnel. The aviation sector now employs millions of people globally, and this number is anticipated to rise dramatically in the coming years. Finally, as the global airline fleet expands, airports and air traffic control systems will be put under increased strain to meet rising demand for air travel. To fulfil this demand, airports will need to invest in infrastructure upgrades such as additional runways and bigger terminal buildings, as well as update their air traffic control systems to accommodate the increasing traffic.

A Challenging Year

It was not like the recovery year 2022 was smooth. While vaccinations and treatments helped to control COVID in North America and Western Europe, China saw epidemics that prompted the country's zero-COVID policy, which resulted in the shutdown of Shanghai and other major cities, as well as some MRO facilities and aerospace parts manufacturing. The coronavirus has already impacted global supply networks since 2020. On February 24, 2022, Russian President Vladimir Putin launched a war on Ukraine, killing hundreds and causing havoc in trade and commodity markets due to anticipated shortages of Russia's titanium, nickel, aluminium, oil, and gas, as well as Ukraine's grain supply.

Having said that, the most vexing issues for aviation were significant labor shortages in almost every industry and in almost every region. The industry in North America is experiencing two potentially severe shortages of commercial airline pilots and aircraft technicians. According to our calculations, supply shortfalls will account for 18% of the overall pilot workforce in 2023 and 14% of aviation mechanics. The shortfalls are expected to expand, or at least persist, through 2033. The shortage of pilots has already resulted in service reductions on less popular and more rural routes, mostly affecting smaller airlines. Moreover, a lack of trained mechanics and pilots is likely to impede the whole sector over the next decade. Yet, the aviation workforce shortage is a global issue. European ground staff shortages were so ubiquitous and severe in 2022 that certain European airports, including London's Heathrow and Amsterdam's Schiphol, imposed capacity limitations. More air traffic controllers are desperately needed in India, the world's fastest expanding aviation market, according to our most recent Fleet and MRO Outlook. Yet, because so many jobs in aviation are crucial to operations, any prolonged deficit may eventually result in the industry's development being constrained not by a lack of demand but by supply limits.

The growth of low-cost airlines

The proliferation of low-cost carriers is another element driving the increase in the airline fleet (LCCs). These airlines make air travel more economical, making it more accessible to a larger spectrum of travellers. LCCs are predicted to account for 50% of global passenger volume by 2030, according to research by the Centre for Aviation (CAPA). As a result, several airlines are investing in low-cost carriers (LCCs) or developing their own low-cost brands to enter this market.

The rise of new airlines in emerging markets

The entry of new airlines into emerging markets also contributes to the expansion of the airline fleet. In recent years, countries like China and India have experienced an increase in demand for air travel, resulting in the establishment of numerous new airlines. Several airlines are investing in new aircraft to expand their fleets and fulfil rising air travel demand.

Demand for aircraft

Labor shortages exacerbate supply chain snarls, which have already resulted in lengthier wait times on parts, sometimes more than a year. Yet the strain on supplier capacity is only set to increase once the world's leading aircraft manufacturers, Airbus and Boeing, begin to execute their projected higher production objectives, which would be impossible to reach even if supply chains were running properly. Several of their largest suppliers have openly said that the increased output may be beyond their and the rest of the supply chain's capabilities. But the increased manufacturing is only a reflection of the expanding demand for aeroplanes. Air India announced the biggest aircraft order in history in February, ordering 470 planes for over $85 billion. Airbus will send 250 planes, while Boeing will supply 220. The purchase is mostly for narrowbody aircraft, although it also includes widebody Boeing 787 Dreamliners and Airbus A350s. The airline has the option to purchase an additional 370 planes. The expansion of the fleet is also driving up demand for MRO (Maintenance, Repair, and Overhaul). Engine MRO has always been the largest segment of the MRO sector and continues to be so today. Engine MRO is predicted to approach 2019 levels in 2023, assisting the entire MRO sector to recover. Because of the quick restoration of air travel demand and utilisation, this recovery occurs a year earlier than previously predicted. Engine MRO is estimated to reach $63 billion by 2033, indicating a 4% compound annual growth rate.

The Long Run

Climate change and the need to cut greenhouse gas emissions are two areas that will put aviation to the test. While it has been overshadowed by more pressing issues such as COVID-19, labour shortages, and the supply chain, it is expected to become a more significant issue that aviation will have to manage as the decade unfolds. France has passed regulations prohibiting air travel between distances that may be covered by a 2.5-hour rail ticket. Several other European nations are developing similar regulations. While not onerous, the new prohibition might be a precursor to additional limitations in the future, particularly in Western Europe. The other issue is a lack of production capacity for sustainable aviation fuel (SAF), which is the most urgent instrument for reducing emissions. SAF, which generates 50% to 80% fewer emissions than regular jet fuel, is a costly replacement at the moment. According to the report, the best-case scenario for 2030 supply is 5.4 billion gallons, whereas the sector would need 16 billion only to maintain 2019 aircraft emissions levels.

Conclusion

Finally, the global airline fleet is predicted to grow by one-third over the next decade, owing to increased demand for air travel and continued advances in aircraft design and manufacture. The expansion is projected to offer new possibilities for aircraft manufacturers as well as new employment in the aviation industry. Yet, the growth of the airline fleet will put further strain on airports and air traffic control systems as they try to keep up with the rising demand for air travel. Overall, the aviation business is positioned for tremendous expansion, posing both difficulties and opportunities for stakeholders across the industry.

Alliance Air on Wednesday, April 12 said flight operations had normalised now after a section of pilots, who were on strike for the last two days, resumed work. On Monday (April 10) and Tuesday (April 11), around 70-80 pilots went on strike to protest against the non-restoration of salaries to the pre-COVID level and non-payment of allowances, among other issues.

Response of the Authorities

Alliance Air CEO Vineet Sood said that pilots had come back to work. He also said that negotiations are going on with the pilots regarding the issues raised by them. In a statement, Alliance Air said flights suffered major disruptions as a section of pilots en masse reported sick in the last two days.

“We are now pleased to inform you that the operations have normalised and flights are operating as per schedule,” the statement said. On Tuesday, sources said the airline has issued notices to the striking pilots and has also asked them to join back for duty.

A statement issued by the airline on Monday had read, ‘The unforeseen disruption in the logistic chain is directly impacting the timely availability of spares in the industry restricting the airline to fly the aircraft due to safety reasons combined with a section of dissatisfied pilots who en masse reported sick without giving any prior intimation, resulted in the cancellation of flight operation on 24 routes.’ The airline had said that this action on part of the cockpit crew caused inconvenience to the travelling public, brought disrespect to the airline, and resulted in revenue loss.

What Happened?

State-owned Alliance Air, which was earlier part of the now-privatised Air India, has around 200 pilots and operates about 130 flights per day. A source had said that at least 70 flights were affected due to the strike by the pilots on Tuesday. A section of pilots has gone on strike without issuing a notice to the airline. It is pertinent to note that Alliance Air airline's pilots have been demanding the restoration of salaries to the pre-Covid level for the past few months. They went on a strike in September 2023 which prompted delays and cancellation of flights. 

Passengers affected by aircraft cancellations and delays have suffered significantly as a result of the pilot strike. According to sources, over 70 flights have been cancelled and many more have been delayed since the strike began. Several passengers have been stuck at airports and have been forced to make other travel plans. The situation has been especially tough for travellers who want immediate transportation and cannot afford to wait for the strike to conclude.

Alliance Air operates ATR planes. It connects 48 destinations within India with 100 departures per day. Pre-Covid, the airline was flying to 62 destinations. The carrier has 18 ATR 72-600 aircraft in service.

A UK watchdog condemned two Etihad Airlines video advertising on Wednesday for making "misleading" and "exaggerated" environmental promises about flights with the UAE carrier.

The Adverts

The Facebook advertisements, which appeared in October 2022, showed a jet, and stated that Etihad acknowledged "the impact flight has on the environment" and had a "louder, bolder approach to sustainable aviation." One of the advertisements also indicated that Etihad was reducing its usage of single-use plastics as part of its sustainability efforts. Nevertheless, the ASA stated that such programmes "do not provide substantial proof to support a ‘sustainable aviation' claim."

Inadequately supported claims

The Advertising Standards Authority (ASA) stated on Wednesday that "currently no projects or commercially viable technology in existence within the aviation sector can satisfactorily justify an absolute green claim such as 'sustainable aviation.' " The ASA "concluded... that the claim inflated the impact of flying with Etihad on the environment and the advertisements violated" the regulator's advertising code. Etihad was advised by the watchdog to clarify the basis for any future statements "to ensure that their advertisements did not offer a false impression." It recognised Etihad was taking "effort to mitigate the environmental effect of its service," but compared this with aviation's "high levels" of harmful emissions. "We acknowledged Etihad's comments on using new aircraft and flight methods to cut emissions," the company added. "We recognised, however, that air travel continued to emit large amounts of CO2 and non-CO2 emissions, which were contributing significantly to climate change."

"The ASA decision has disappointed Etihad Airlines." Sustainability is a top priority for Etihad, "which has a comprehensive research and development program to address aviation decarbonization, working to reduce the environmental impact of aviation by investing billions in modern, fuel-efficient aircraft, research into sustainable aviation fuels, carbon offsetting, and reforestation." Etihad responded by emphasising its climate measures and its goal of reaching "net zero" carbon emissions by 2050. The ASA, on the other hand, claimed that "many of these projects were designed to provide outcomes years or decades in the future." Environmentalists regularly accuse major corporations of "greenwashing," or promoting often dubious environmental initiatives in order to bolster their reputation. Last month, ASA chastised German airline Lufthansa for a "misleading" billboard campaign claiming to be "saving" the environment. Sustainability claims must be supported by a high level of evidence under UK advertising regulations, and while the ASA acknowledged Etihad's efforts to reduce its environmental footprint, it concluded that their portrayal in the advertisements exaggerated their impact, and that not enough information was provided for customers to fully assess the sustainability claims.

Etihad’ View on Sustainability

From its recognisable 'Greenliner' Boeing 787-10 to meticulously produced advertising campaigns, Etihad has not shied away from the environmental debate, instead tackling it hard on. The airline just passed the 40% mark for electric vehicle service at Abu Dhabi International Airport (AUH), a ratio that can only rise as greener technology becomes more popular. The carrier went on to remark, emphasising the continuous significance of sustainability at Etihad, "The airline will continue to take daring and new actions, including as collaborating with aircraft and engine manufacturers, sustainable fuel suppliers, universities, and inventors, to make flying more sustainable than it would be otherwise."

Aviation's Environmental Effect

The aviation business has a considerable environmental effect, and airlines are increasingly under pressure to cut their carbon emissions. The International Air Transport Association (IATA) has set a target for the aviation sector to cut carbon emissions by half by 2050 compared to 2005 levels. Numerous airlines have pledged to minimise their carbon footprint, notably by using more fuel-efficient aircraft and sustainable aviation fuels. Yet, the sector has been chastised for not doing more to mitigate its environmental effect.

The Function of Advertising Guidelines

Advertising standards guarantee that advertisements are true, lawful, and honest. The Advertising Standards Authority (ASA) enforces advertising standards in the United Kingdom by investigating public complaints about advertising. If advertisements are deemed to be misleading or deceptive, the ASA has the authority to require their removal or modification. The ASA's conclusions may potentially have a broader impact, as they may set standards for the whole advertising sector. The ASA's conclusions in the instance of Etihad Airlines may urge other airlines to be more cautious with their environmental promises in their advertising efforts.

Conclusion

The UK's advertising standards authority's censure of Etihad Airlines emphasises the necessity of ensuring that environmental claims made in advertising campaigns are supported by solid proof. The aviation business has a substantial environmental effect, and it is critical that airlines disclose their environmental impact and take actions to decrease carbon emissions. The conclusions of the ASA might have a broader influence on the advertising sector as a whole, prompting other businesses to be more cautious with their environmental claims. It is intended that this would encourage more openness and honesty in advertising, which will help both consumers and the environment.

With Inputs from Barrons

S7 Group, the Russian corporation that owns S7 Airlines, has purchased the Berdsk Electromechanical Factory (BEMZ). This would enable the company to manufacture, test, and certify aircraft parts as Russia's civil aviation industry seeks new ways to avoid sanctions imposed by Western countries following the Kremlin's invasion of Ukraine in February 2022. "The S7 Group comprises many firms with varying expertise in fleet repair and maintenance. BEMZ is required for the organisation to manufacture, test, and certify the missing items." An investment and technical re-equipment programme for the firm will commence in the near future," stated the CEO.

History of S7 and BEMZ

S7 Airlines operates out of Novosibirsk Tolmachevo International Airport (OVB). According to statistics, the airline has a fleet of 102 aircrafts, all of which are manufactured by Western manufacturers (Airbus, Boeing, and Embraer). The airline operates 66 Airbus aircraft (all narrowbodies), comprising three A319s, 16 A320ceos, 31 A320neos, eight A321ceos, and eight A321neos. S7 also has 19 Boeing 737-800s (two of which are freighters) and 17 Embraer E170s. JSC Berdsk Electromechanical Factory (BEMZ), founded in 1959, is a machinery building enterprise. Manufacturing items for the defence complex, the space and rocket industry, aviation, and civilian electromechanical products are the plant's top priorities.

Acquisition Details

S7 Airlines finalized the takeover of BEMZ in March 2023. S7 Airlines paid an unknown price for the purchase of all of BEMZ's shares. In March, S7 subsidiaries aggregated more than 82.18% of BEMZ shares. Sergey Savchenkov, who directed S7 Space, a corporation committed to the development of space technology from 2020 to 2021, obtained 59.52% of the permitted participation. Another 22.66% is controlled by Engineering LLC, a business co-owned by S7 board member Vladislav Filev. Vasily Yurchenko, a former Novosibirsk area governor, was named CEO of BEMZ in March. The acquisition of BEMZ by S7 Airlines will allow the airline to extend its skills in developing and manufacturing aircraft parts and testing equipment, according to the company. The firm intends to employ BEMZ's experience to improve the quality and safety of its operations as well as its aircraft maintenance and repair services.

Prior Instances

Aeroflot recently dispatched an Airbus A330 to Iran's Mahan Air for landing gear maintenance. Another example is that new Sukhoi Superjet aircraft are being produced using used engines and non-Michelin tyres (as it was previously done). There have been instances of airlines cannibalizing new jets for spare components in order to keep existing planes flying. S7 Airlines had placed an order with Boeing for a new Boeing 737 MAX 8 plane. Nevertheless, due to sanctions imposed following Russia's invasion of Ukraine, these jets are now undeliverable. In recent months, Turkish Airlines subsidiary AnadoluJet completed the delivery of five Boeing 737s intended for S7. This month, it was also rumored that another MAX bought by S7 will be delivered to Qatar Airlines soon. With Russia's invasion of Ukraine and subsequent Western sanctions, airlines in this nation were unable to obtain replacement parts from conventional suppliers such as Boeing, Airbus, and Embraer. As a result, the only way to keep the planes flying was to cannibalize other planes of the same kind or make their own components, like S7 will do.

Advantages of the Acquisition

S7 Airlines expects to reap various benefits from its acquisition of BEMZ. For starters, it will allow the airline to manufacture aircraft parts in-house, decreasing reliance on external suppliers and enhancing operating efficiency. With BEMZ's skills and experience, the airline will also be able to develop novel solutions for the aviation sector. Second, by employing BEMZ's technological expertise and equipment, S7 Airlines will be able to improve its aircraft maintenance and repair services. This will increase the airline's operational safety and dependability, as well as its reputation as a leading player in the aviation sector. Furthermore, the purchase will allow S7 Airlines to expand its operations and enter new areas by using BEMZ's strong customer and partner network. The airline will be able to expand its market share and boost its position in the highly competitive aviation business as a result of this.

Conclusion

S7 Airlines' acquisition of BEMZ is an important event in the Russian and worldwide aviation industries. With BEMZ's skills and experience, S7 Airlines will be able to grow its capacities and improve its operations. S7 Airlines expects the purchase to deliver several benefits and boost its position as a prominent player in the aviation sector.

With Inputs from Aviacionline

Indian Oil Corporation Ltd. (IndianOil), India's leading energy company, today signed a memorandum of understanding (MOU) with LanzaJet, a leading sustainable fuels technology company and producer of sustainable fuels, to investigate the development of sustainable aviation fuel (SAF) production in India.

Background of IndianOil

IndianOil is India's flagship national oil business, operating throughout the hydrocarbon value chain, including refining, pipeline transportation, crude oil and gas production, gas marketing, and alternative energy sources. India's energy transition, as a fast-rising economy, will be critical in global energy markets. IndianOil is implementing mitigating measures such as sustainable fuel alternatives to help the country meet its lofty clean energy targets. LanzaJet is a leading sustainable fuels technology firm committed to expediting the energy revolution through the adoption of the circular economy.

"IndianOil is the leader in India's aviation fuel segment, and as we move forward on the path to achieve net-zero operational emissions by 2046, we aim to enhance our basket of lower carbon fuels, and this partnership will be another step in this direction, which would accelerate India's commitment to become net-zero by 2070," said the Chairman of IndianOil during the MoU signing ceremony. Developing a SAF ecosystem in India would hasten the energy transition and ensure our leadership position in the sustainable fuel market."

History of LanzaJet

LanzaJet, launched in 2018, is a sustainable aviation fuel (SAF) firm. It is a subsidiary of LanzaTech, which pioneered the creation of a method for converting waste carbon emissions into useable fuels. LanzaJet specialises in the manufacture of SAF, a renewable and low-carbon alternative to standard jet fuel. LanzaJet's SAF is created using LanzaTech's technology, which captures waste carbon emissions from industrial sources and converts them into ethanol. The ethanol is then converted into SAF, which may be utilized in commercial flights without requiring any changes to current aircraft or infrastructure. LanzaJet, located in Chicago, Illinois, assists firms in producing aviation fuel from ethanol produced from agricultural or industrial waste. Its investors include Microsoft, the US Department of Energy, Japan's Mitsui & Co., and Canada's Suncor Energy.

Understanding Sustainable Aviation Fuel (SAF)

SAF (sustainable aviation fuel) is a low-carbon, ecologically friendly fuel derived from renewable sources. SAF is a direct replacement for normal jet fuel and may be utilized without altering the engine. SAF is made from a variety of feedstocks, including municipal trash, agricultural wastes, and forestry residues. SAF is seen as a possible solution for the aviation industry's carbon emissions, which considerably contribute to climate change.

The Investment

According to the proposed organizational structure of the new firm, IOCL will hold 50% and LanzaJet Inc. will control 25%. A number of airline companies would be granted the remaining 25% stake. Domestic airlines have expressed interest in participating in this initiative. According to a senior industry insider acquainted with the development, many airline enterprises may be awarded between 2% and 5% stakes, with IOCL retaining 25% for them. The airlines, according to the official, are being involved to assure fuel offtake.

IOCL and LanzaJet would spend Rs. 1,500 crore and Rs. 750 crore, respectively, on the planned plant. The remaining monies would be invested by airlines that elect to join the new organization. According to an industry source, Tata Group, the parent company of Air India, Vistara, IndiGo, GoFirst, and Blue Dart, has been approached about investing in the project. They might each invest between Rs 100 and Rs 150 crore for a minority stake in the company. SAF is a biofuel with properties similar to those of standard jet fuel but with a lower carbon footprint. The proposed plant will employ technologies to convert corn, cellulosic biomass, or sugar ethanol into SAF. It would initially generate 85,000 metric tones of fuel per year. IndiGo, the country's largest airline, has stated that it is evaluating the proposal. "Recently, the government had a debate on this topic with the assistance of airlines and oil marketing organisations" (OMCs). According to an IndiGo spokesperson, we are examining the request.

The Collaboration

Indian Oil already has a partnership with LanzaTech, LanzaJet's parent firm, to convert waste to ethanol, and the LanzaJet contract will aid in the conversion of the ethanol to cleaner jet fuel. According to Vaidya, the oil refiner is also in negotiations with Italy's Snamprogetti SpA about converting gas pipes into hydrogen pipelines. The new alliance will establish a factory to generate SAF utilizing alcohol-to-jet technology at the state-run company's Panipat refinery in Haryana for Rs 3,000 crore, they stated. "With one of the world's greatest population centres seeing fast expansion in energy consumption and travel, India is a vital market as our globe grapples with energy security, climate change, and economic development problems," said Jimmy Samartzis, CEO of LanzaJet. "Our collaboration with Indian Oil Company is critical to decarbonizing the aviation sector by increasing access to sustainable fuel options in this portion of the world through our alcohol-to-jet technology, which uses Indian waste and ethanol supplies."

Our collaboration will enable India's move to greener fuels and accomplish the country's carbon reduction objective. The agreement was signed during India Energy Week in Bengaluru, India, by Mr. Santanu Gupta, Executive Director (Alternate Energy & Sustainable Development), and Mr. Jimmy Samartzis, CEO of LanzaJet, in the presence of Shri Hardeep Singh Puri, Honorable Minister P&NG and H&UA, Shri Shrikant Madhav Vaidya, Chairman, IndianOil, and senior officials from IndianOil and LanzaJet. LanzaJet and IndianOil have signed an agreement to investigate large-scale SAF production in India utilising LanzaJet's leading and proven Alcohol-to-Jet (ATJ) technology. The collaboration will enhance access to and use of sustainable fuels in India by utilising innovative technologies to expand emission reduction efforts. LanzaJet and IndianOil are collaborating to strategically extend their collaboration with an Indian Joint Venture (JV) to deploy the LanzaJet ATJ technology. In contrast to the United States and the European Union, India currently lacks rules controlling sustainable aviation fuel (SAF). The European Commission's SAF mandate is set to begin in 2025, with a 2% minimum volume of SAF. LanzaTech is to begin manufacturing ethanol-based aviation fuel at its Panipat refinery in 2-3 years, according to Chief Executive Officer Jennifer Holmgren.

Advantages of Cooperation

Indian Oil and LanzaJet's relationship is likely to benefit both firms and India as a whole. Indian Oil will have access to LanzaJet's unique technology for producing SAF from non-recyclable garbage by working with the firm. This will assist Indian Oil in diversifying its portfolio while also reducing its carbon footprint. This partnership also aligns with India's objective of attaining net-zero emissions by 2050. LanzaJet, on the other hand, will gain from its partnership with Indian Oil, the country's largest oil firm. This collaboration will assist LanzaJet in expanding its footprint in India, which is one of the world's fastest-growing aviation markets. The Indian aviation sector is likely to develop considerably in the next few years, creating huge potential for SAF.

Conclusion

The partnership between Indian Oil and LanzaJet to create sustainable aviation fuel (SAF) is an important step in reducing India's carbon footprint and achieving net-zero emissions by 2050. The collaboration intends to construct a demonstration facility in India that will employ LanzaJet's technology to create SAF from non-recyclable garbage. This agreement is intended to benefit both Indian Oil and LanzaJet while also contributing to the expansion of India's aviation sector. The Ministry of Civil Aviation has mandated that airports transition to electric-powered vehicles and equipment in order to reduce emissions during ground handling activities. The ministry is presently finalising a ground-handling equipment guideline that will set the minimum and maximum ages for equipment to be utilized at airports. By 2030, India hopes to reduce its estimated carbon emissions by one billion metric tonnes and receive 50% of its energy from renewable sources.

With Inputs from LanzaJet, TheIndustryOutlook