Indian Airlines Grapple with Sustainability Challenges Amid Government's Green Fuel Push
The Civil Aviation Ministry's proposal requested Indian airlines to collaborate in a joint venture for the production of green fuel, a vital component in achieving sustainability goals, according to a media report.
As part of the proposal, airlines are asked to invest a substantial 25 per cent of their profits in this venture. Air India and IndiGo have received requests to consider taking up to 5 per cent stakes in this joint venture, which will have partial ownership from Indian Oil Corp and LanzaJet, a US-based food company specializing in sustainable aviation fuel.
While airlines like SpiceJet, IndiGo, Air India and Vistara have taken initial steps towards sustainability, some industry insiders express concerns. Anonymous airline executives raise questions about diverting focus from their primary business of operating flights and entering into a new venture with diverse stakeholders, each with their own green targets.
The report also highlights the challenges of finding common ground and effective collaboration. It is a known fact that becoming more environmentally responsible comes at a significant cost. The production and utilisation of sustainable aviation fuel can be three times more expensive than conventional fuel, potentially leading to higher airfares. This cost burden may impact flight demand and create procurement challenges for the airlines, further complicating the transition.
Indian airlines are facing a challenging dilemma as the government sets ambitious sustainability goals, paving the way for a transition to sustainable aviation fuel. Starting in 2025, they have been invited to participate in a groundbreaking green fuel joint venture proposed by the Civil Aviation Ministry which aims to align the aviation industry with sustainable practices, but it comes with significant financial and operational complexities.
Indian airlines have begun exploring sustainable aviation fuel options, albeit on a limited scale. SpiceJet made history in 2018 by blending 25 per cent bio-jet fuel from the Jatropha plant with 75 per cent conventional jet fuel. However, the larger question remains: will the government adopt a gradual approach to blending, possibly starting with international flights, to ease the transition's financial and operational burden?
Some airlines are already making strides towards sustainable aviation fuel adoption. IndiGo, for instance, has partnered with the Council of Scientific and Industrial Research, Indian Institute of Petroleum, to develop a new sustainable fuel blend. Vistara, in collaboration with Boeing and GE Aerospace, has experimented with a 30 per cent sustainable fuel blend on long-haul flights.
The aviation industry faces an ongoing debate as airlines assess the government's proposal. While sustainable aviation fuel availability and cost remain significant challenges, the industry remains optimistic that, with government support, these hurdles can be overcome as they inch closer to a more sustainable aviation future.
