Touting its volume purchasing power and its relationship with World Fuel Services, Zurich-based Jet Aviation has introduced a new on-site fuel service intended to pass along savings to its FBO and MRO customers in Europe, the Middle East, Africa and Asia. The program will be offered in tandem with Jet Aviation’s existing fuel program, which is currently excusive to its aircraft management clients.
Airports, Heliports and FBOs » Fuel
Moving on from the February dissolution of a decade-long licensing agreement, Epic Aviation and Air BP are continuing to make strides in different directions. Epic, a privately owned fuel distributor known previously as Valley Oil, had acted as Air BP Aviation Services since the 2002 formation of a joint venture company with the oil company and managed the 300-location Air BP FBO network and its programs.
A provision inserted into a 2005 highway bill that has given business and general aviation fuel purveyors a collective headache ever since it was enacted might be repealed in the next highway reauthorization bill. Thirty-two members of the House of Representatives signed a letter to Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee, asking that the provision be deleted from new highway legislation now under consideration.
Jet Aviation launched a new fuel sales service for its FBOs in the European, Middle Eastern and Asian regions this week at EBACE. Using its global purchasing power to negotiate a better fuel price with supplier World Fuel Services, Jet Aviation’s new fuel sales service can pass cost savings on to FBO and MRO customers visiting these facilities. It will be offered in tandem with the company’s existing fuel program, which is exclusive to aircraft management clients.
Action Aviation has signed an exclusive distribution agreement with AirGlide, a UK company, which claims that its new Aviation Shield nano-technology coating can result in aircraft fuel-burn savings of around 4 percent through drag reduction of up to 40 percent. Nano particles fill all the microscopic gaps and crevices in the aircraft skin surface.
With increasing visibility outside North America, operating more than 3,500 locations worldwide, Avfuel (Stand 456) claims that growing availability of its contract fuel service ensures that corporate flight departments are able to buy fuel at competitive prices no matter where they fly. In addition to boasting a growing network of its outlets, the U.S.-based group provides automated billing to streamline transactions.
BP’s oil refinery in Cherry Point, Wash.–which had been closed since February when a critical unit was damaged by fire–is expected to resume production this month after completion of repairs and annual maintenance. The refinery, the third largest on the West Coast, produces more than 200,000 barrels of gasoline and jet fuel a day and supplies the bulk of jet fuel for airports from Seattle to Vancouver, British Columbia. According to industry data provider Argus, the shortfall did not result in any dramatic jet fuel price spikes in the region.
Moving on from the February dissolution of its licensing agreement with BP for use of the Air BP name, fuel distributor Epic Aviation expects to complete the rebranding of the former Air BP network of FBOs in the U.S. and Canada to its own Epic Aviation brand this summer.
The Oregon-based company’s recent alliance with flight-planning provider Universal Weather & Aviation will soon bear fruit. Next month, Epic will roll out a premier brand among its 300-plus affiliate FBOs known as the UV Air FBO Network, which will debut at more than 20 major gateway airports.
Global energy, petrochemicals and metals information provider Platts launched a jet fuel microsite yesterday aimed at the energy information needs of the aviation industry. “We’re pleased to introduce a one-stop source of global jet fuel news and price data that we believe will further enhance transparency in and broader understanding of the aviation fuel markets,” said Platts global editorial director of oil Dave Ernsberger.
Oil speculators’ uneasiness over the resurgence of the “Arab spring” is the main factor driving jet-A prices ever closer to–and in some cases beyond–$6 per gallon, according to aviation fuel consultant Mark Wagner. Jet-A prices in the continental U.S. are now averaging $5.64 per gallon, ranging from $3.94 in the Great Lakes region to $6.01 in the Eastern region, current data from AirNav shows.
The price of Brent Crude, which is refined to make jet-A and other fuels, continues to rise and stood at $124.20 per barrel late yesterday.