14 DAY TRIAL // Yesterday, United Continental Holdings Inc., which happens to be the world's biggest airline, announced plans to slash yearly spending by as much as $2 billion (€1.5 billion). The deadline for this initiative is the year 2017.
What's interesting is that part of the money the company will save over the next four years will be the result of efforts to slash fuel consumption.
“The company has launched initiatives to reduce costs by $2 billion annually. The plan includes reducing fuel consumption, increasing productivity, reducing sourcing costs, improving maintenance processes and inventory procedures, and optimizing distribution methods,” reads the press release on the matter at hand.
Oil Price tells us that, as surprising as this may sound, better fuel efficiency will account for 50% of the $2 billion the company wants to save.
To achieve this goal, the company is to turn to new and more efficient planes such as the Boeing 787 Dreamliner. What's more, it will subject the aircraft it already owns to a green makeover, meaning that it will fit them with winglets.
All in all, United Continental Holdings Inc. expects that these measures will help lower its fuel consumption by roughly 7% over the following four years.
Granted, United Continental Holdings Inc. might have decided to reduce its annual fuel consumption not because it is very much preoccupied with the size of its ecological footprint, but due to financial considerations.
Still, odds are that environmentalists have nonetheless welcomed its plans for the future.
Commenting on the company's new initiative, Chairman, President and CEO Jeff Smisek said that, “We are working together to build on United's core strengths and deliver excellent long-term results for our investors.”
“We are committed to achieving sufficient and sustainable profitability that will benefit all of our stakeholders,” he added.
News of United Continental Holdings Inc.'s taking steps towards reducing its fuel consumption comes shortly after the Roundtable for Sustainable Biomass awarded the gold standard certification to a new jet biofuel developed by LanzaTech. Otherwise put, the aviation industry it well on track to green up its ways.