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IAG Unveils 29 Startups Selected for 2025 Aviation Accelerator

IAG Unveils 29 Startups Selected for 2025 Aviation Accelerator
International Airlines Group (IAG) has revealed the selection of 29 startups for its 2025 Aviation Accelerator, marking a significant expansion that more than doubles last year’s intake as the program enters its ninth year. This enlarged cohort underscores the increasing prominence of artificial intelligence and sustainability-driven innovation within the aviation sector. As the parent company of British Airways and Iberia, IAG is making its largest investment to date in AI and climate technology.
Dual-Track Program Reflects Strategic Focus
The startups chosen for this year’s program represent 11 countries and, for the first time, are organized into two distinct tracks. The newly introduced “Discover” track is designed for early-stage startups, with a particular emphasis on those developing sustainable aviation fuel (SAF) and energy transition technologies. Fifteen companies will engage in a six-month mentoring program aimed at preparing them for potential future deployment within the industry. Concurrently, the “Deploy” track offers a commercially oriented, 12-week proof-of-concept opportunity in collaboration with IAG’s operating companies.
The IAGi Accelerator, the group’s flagship innovation initiative, seeks to accelerate collaboration with startups across six key areas, including AI, robotics, sustainability, and next-generation computing. Nisha Basson-Mugnier, IAG’s innovation principal, explained the motivation behind the dual-track approach, stating, “We saw the opportunity to engage with early-stage deep-tech startups in a better way. We’ve worked with these types of companies before in our traditional format, but launched the Discover track to reflect how much activity and innovation we’re now seeing—especially in the energy transition space.”
Addressing Industry Challenges Amid Growing Regulatory Pressure
The urgency surrounding sustainable aviation fuel is intensifying, as it is widely regarded as the most scalable near-term solution for decarbonizing long-haul flights. Regulatory frameworks are tightening, with both the European Union and the United Kingdom moving toward mandates requiring SAF usage. This regulatory momentum is prompting airline groups like IAG to engage with promising startups earlier in their development cycles.
Despite the program’s growth, the accelerator faces significant challenges. The aviation startup ecosystem is becoming increasingly crowded, with competition not only among startups but also from established industry players. Market saturation and the imperative for participating startups to scale effectively may test the program’s capacity to generate meaningful outcomes. At the same time, the sector’s competitiveness is attracting heightened investor interest in innovative aviation technologies. IAG’s expanded commitment may also spur competitors to forge strategic partnerships or accelerate their own technology development initiatives.
As the 2025 cohort embarks on the program, the IAG Aviation Accelerator remains a key indicator of industry trends, highlighting the direction of airline innovation and the technologies gaining momentum. The group’s increased investment reflects both the opportunities and the complexities confronting aviation as it adapts to a rapidly evolving technological and regulatory environment.

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