How cheap is jet fuel in the Middle - East?
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Join Date: Aug 2007
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How cheap is jet fuel in the Middle - East?
Austrian Airlines reported to be buying fuel directly from Kuwait. Great strategy but what about airlines tankering from the sandpit? Would it be worthwhile to do multiple sector tankering if their operations can coordinate aircraft utilisation in susequent services to benefit from such tankering; weights ( MTOW/MLDW ) permitting. This can be consideration in short sectors.
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A lot of the European charter ops (especially during the European winter) stage through the smaller international airports throughout the UAE so no doubt concessions or cheap fuel there for sure. In the Haj, Ras Al Kaimah and Al Ain are used heavily, Qantas based their old classics in Al Ain for the GIA contract last year.
A few of the major international airlines have always attacked the administrations and governments of Middle East airlines on the possibility of subsidies (Qantas, Air France etc.). All denied of course.
A few of the major international airlines have always attacked the administrations and governments of Middle East airlines on the possibility of subsidies (Qantas, Air France etc.). All denied of course.
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If the fuel for Qatar airways was free here in Doha, why are we not tankering out of here for all the flight as far as we can, While on some flights we are tankering out station back to Doha...?
What about all this measures to reduce fuel cost here..reducing of cost index etc....???
I doubt the fuel is free...
What about all this measures to reduce fuel cost here..reducing of cost index etc....???
I doubt the fuel is free...
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most other airlines in the region have heavy government subsidies on their fuel bills.
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Don't have anything to prove otherwise apart from EK's ever rising fuel bill but very unlikely that EK has "heavy government subsidies" as someone mentioned above. They do get a special deal with the various fuel vendors in DXB but that comes with being a very big bulk customer. Similiar deals are in place with most flag carriers at their home bases. eg.Singapore, Cathay,BA. The small number of tankering sectors OUT of DXB would also indicate that the price difference in and out of port doesn't warrant such operations into most dest's. Off the top of my head, I think EK only tankers into about 10-15% of destinations...mainly South Asian and African destinations where fuel price is significantly higher. Fuel hedging has also played a significant part in EK's outstanding financial performance compared to many others. They are indeed very lucky to have some pretty talented people (some would say speculators) in this department that has saved the company millions if not billions recently. These contracts however are coming to an end and new ones are only going to get more expensive . "Heavily subsidised" or "free" fuel statements sound like the jealous neighbour who can't believe that things can be done better than his/her way.
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900US/ton seems very low compared to:
http://www.iata.org/whatwedo/economi...e_analysis.htm
But, then again, who knows why discounts are available?
It was once rumoured, a small regional airline in the UK I worked for got a better deal than LH. But then, the parent company did have a fleet of supertankers chartered out to the oil companies.
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http://www.iata.org/whatwedo/economi...e_analysis.htm
But, then again, who knows why discounts are available?
It was once rumoured, a small regional airline in the UK I worked for got a better deal than LH. But then, the parent company did have a fleet of supertankers chartered out to the oil companies.
Bored
