MUMBAI: State-owned Air India on Saturday said it targets to save around Rs 900-crore, following the implementation of its fuel efficiency
programme. While addressing media, Air India chairman and managing director Arvind Jadhav said: “We have already saved Rs 146 crore on account of fuel savings programme up to October 2009. We expect around Rs 800-900-crore savings by the time we get software to facilitate better fuel management by fiscal end.”
The airline is currently implementing various initiates to enhance its fuel efficiency in association with global airlines body, International Air Transport Association. Air India said that improved its passenger load by over 10% and reduced costs in 2009 by deploying new aircraft and rationalising routes. It will return three more Boeing and 10 Airbus from its fleet.
Air India has also shelved its plan to launch a separate brand for all- economy, no-frills service — a la Jet Konnect — taking into account the changed market-scenario over the last few months. In the all-economy, no-frills service concept, fares are lower than what full service airlines offer but higher than low cost carriers. “We would have come out with a separate brand. But since we have the Air India Express (low-cost), we will expand under that brand rather than coming out with a Konnect-kind of concept,” Mr Jadhav said.
The national air-carrier was also looking at achieving savings from other segments such as hotel and transportation, he said.