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The need to address environmental challenges by aviation industry is apparently obvious. As evidenced within the industry, it takes a three pronged strategy - more efficient aircraft, improving operational efficiencies and development of sustainable biofuels. In terms of actual growth of airline business, the two major drivers are domestic air service expansion within BRIC economies and rapid spread of Low Cost Carrier (LLC) models. Focusing not only on environmental challenges, even sustainable business development and growth of LCC depends critically on ATF substitution by alternative fuels. The inherent need for carbon subsidy and airline-airport partnership towards sustainable substitution with bio-alternatives is discussed in first part of the paper. A framework for such an airline airport win-win partnership is delineated.

The potential for small scale local production of Bio fuel derivatives and their partial blending with aviation turbine fuel in non-civilian bases has been investigated. A feasibility study on technical readiness levels for process viability is presented in the paper. Demand side analysis for various blend mixes and corresponding requirement for production facilities and land area requirements are performed. Sustainable production and blending operations are the basis for selection of key performance indicators for the air base. Guiding framework and readiness evaluation processes are delineated for the base. Qualitative inference is combined with quantitative scoring system within the framework.