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.

Well Qatari gets their fuel for free and most other airlines in the region have heavy government subsidies on their fuel bills.

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. :oh:

Directly or indirectly, that's how it goes. And the books are fudged to make it look otherwise.

With out a doubt, the answer is YES.


Mutt

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...:ouch:

Oh really, and what proof do you have of that? Fuel is tended on the open exchange, mainly in Singapore. As was mentioned, if it was free or subsidised then why tanker into the middle east?? EK for one, makes its fuel bill available for scutiny and it's a big one at that. Offering discount fuel to attract airlines to an otherwise under used airport is a local arrangement, no different to reduced handling charges etc.

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.

Green...out. :8

To make it really easy for you, it's simply a matter of taking money from the left pocket and putting it in the right pocket. Figure out the details yourself.

Oh that old chestnut... then EK can expect a massive bonus with a zero fuel bill, can't wait. Dubai must have a pretty big jet fuel refinery stashed away somewhere.

EK is paying about 900USD per ton ex DXB.

Tankering fuel INTO the ME is used sometimes to extract capital out of countries with questionable currency.

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.

Bored

spag,
that's where your latest bonus came from. Of course it ain't all of it. The rest is for the bosses.

No tankering
 

Tankering?

Let me see: DXB-JFK

It cost 420 kg more fuelburn per 1000kg extra fuel.

Don't think so:}

All depends on the price of fuel at the departure plus 40%..... Maybe its still worth it.

Mutt

Secret is out, EK don't pay anything for Jet A1 & the pilots pay 20p/litre to fill the Porsche.

Oh so that applies to EK as well, thought that it was only in this part of the desert :)

Mutt