easyJet to trial plane with fuel cells to help cut costs

By Sarah Young

VENICE, Italy, Feb 2 (Reuters) - British low-cost airlineeasyJet said it would trial a new fuel cell system onplanes that could cut its fuel bill by up to $35 million a year,as part of its battle to keep fares low and compete againstRyanair.

easyJet said on Tuesday that, if trials of an Airbus fittedwith a hydrogen cell in its hold were successful, its planeswould be able to taxi to runways without using jet engines,saving an estimated $25 million-$35 million a year on fuel.

The airline is already benefiting from a plunge in the oil price over the last 18 months, but it could cut its bill furtherwith this new technology, Head of Engineering Ian Davies said atan event in Venice.

About 4 percent of the airline's total annual fuelconsumption is used in taxi-ing at airports, Davies said.

easyJet has a fleet of more than 200 Airbus A319s and A320s.

easyJet and Ryanair have been locked in a battle forsupremacy in the low-cost market for years, with the Irishairline recently upping the stakes by moving to more primaryairports and improving its customer service.

The new technology, which involves a fuel cell capturingenergy from the aircraft's brakes when it lands, would also helpreduce the airline's carbon dioxide emissions.

That could help easyJet if new guidelines emerge later thisyear when the wider aviation industry will probably agree on adeal to limit its carbon dioxide emissions.

easyJet said on Tuesday it would begin ground-based trialsof the so-called hybrid plane later this year.

The airline has a long-term strategy to ensure its ticketprices are competitive and to increase its profitability.

Its past cost-saving plans have included flying dronesaround lightning-hit aircraft to make it quicker to check themfor damage, and sourcing cheaper de-icing supplies from Alaska.

easyJet said in January that for the full-year ended Sept.30, 2016, it expected cost per seat excluding fuel on a constantcurrency basis to be between flat and 1 percent higher than lastyear. Ryanair sees unit costs excluding fuel down 2 percent inthe 12 months ended Mar. 31. (Reporting by Sarah Young; editing by Adrian Croft)