AI targets upto Rs 900-cr savings through fuel efficiency program

National air-carrier, Air India (AI), today said it targets to save around Rs 800-900-crore, following the implementation of its fuel efficiency programme, started in 2008.

The airline is currently implementing various initiates to enhance its fuel efficiency in association with global airlines body, International Air Transport Association.

"We have saved Rs 146-crore on account of fuel savings programme, so far. By the time we get software (to facilitate better fuel management), we expect around Rs 800-900-crore savings," Air India Chairman and Managing Director, Arvind Jadhav, told reporters here.

The fuel efficiency programme envisages vital changes in AI's operational techniques, equipment settings, use of fuel management, flight planning, engine maintenance and cabin weight management.

Jadhav said the airline is currently implementing certain fuel efficiency initiatives, which did not require much technology. Once the required software was in place that will lead to better fuel efficiency management.

"There are several components of the fuel efficiency programme--those which we can do immediately and those which can be achieved by the procurement of software," Jadhav said. The national air-carrier was also looking at achieving savings from other segments such as hotel and transportation, he said.

As part of the cost-savings programme, Air India have also started merging its hotel accommodation and transportation, Jadhav said.

"We have also started merging hotel accommodation and transportation as well as merging foreign domestic travel as part of the cost-savings programme," he said.