Indian Airlines, the ailing national carrier, achieved savings of Rs 158 crore (Rs 1.58 billion) in 2002-03 compared with Rs 58 crore (Rs 580 million) in the previous fiscal.

Sunil Arora, chairman and managing director, told reporters at the sidelines of a press conference in Mumbai that cost cuts had resulted in the savings.

Route rationalisation, budgetary controls, aircraft maintenance, inventory control and outsourcing of services are some initiatives adopted by the airline to keep costs under control.

Also, the new and innovative marketing initiatives introduced during the year besides the pacts with state governments to promote domestic tourism in collaboration with the state tourism organisation helped the airline.

According to IA, it has been incurring losses during the past couple of years owing to reasons beyond its control. The increasing prices of aviation turbine fuel has compounded its woes.

Meanwhile, the airline is acquiring 43 new aircraft for around Rs 10,000 crore (Rs 100 billion) over five years beginning 2003-04.

Meanwhile, IA in association with ABN Amro Bank and MasterCard International on Monday launched the first airline debit card in south Asia.

The card, called Indian Airlines ABN Amro Bank Maestro card, will be launched in all nine cities where ABN Amro has its branches including Mumbai, Delhi, Hyderabad, Chennai and Pune.

"The existing customer base of the bank and that of the IA frequent flier programme will be offered this card," ABN Amro Bank's head, consumer banking, Nitin Chopra, said.

A cardholder will get a 10 per cent discount on tickets purchased at IC booking offices and also from authorised agents of the airline. Cardholders will also get free membership of the IA frequent flier programme.