Aviation Fuel Consultants has been listed as the solution to aviation when making fuel purchases by Fly Corporate Magazine. We are your personal experts dedicated to helping you save thousands in fuel costs around the world. We all know that the aviation and fuel industry works hand in hand. Having a supplier who is trustworthy, while delivering a fast, competitive and reliable service can mean the difference between profits and losses.

Here at AFC, our objective is to ensure you are always paying the absolute lowest fuel price available. AFC is a free service and takes full accountability. Audit the clients' fuel purchasing program and identify problem areas that impact the flight department's bottom line. Implement corrective measures to ensure the client is paying fair prices with all applicable taxes based on your type of operation. Provide ongoing tracking and monitoring of fuel prices to ensure the client is paying fair prices based on market fluctuation.

Obtain lower fuel prices on behalf of the client worldwide. Provide monthly reports outlining the fuel usage and savings. Home About Log In. A New Element to Fuel Purchasing. Fuel Purchasing is our business, Transparency is our bottom line. Partner Plus Program We all know that the aviation and fuel industry works hand in hand. Partner Plus Online Application.

aviation fuel contracts

Apply today. Benefits 1. Last Name.For business aircraft operators, one of the most effective ways to minimize operating costs, particularly when traveling internationally, is to use the services of contract fuel providers. Contract fuel programs offer significant monetary savings, ease fuel credit issues and ensure higher levels of service around the world.

Best practice is to do your due diligence and upfront legwork on research into contract fuel programs, as they all have their own unique strengths and potential weaknesses. There are many different contract fuel programs available to general aviation.

Some are focused on particular regions, such as Africa or the US. Other contract fuel programs are optimized for certain types of operators, such as private non-revenue operations.

A fuel reseller is a company that resells fuel purchased from another supplier, but the reseller may also be a contract fuel provider.

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Contract fuel programs, on the other hand, have direct contracts with oil companies and fuel suppliers to provide a wide range of jet fuel availability for operators. Contract fuel providers and resellers are able to leverage buying power to provide better fuel pricing at airports all over the world. With a contract fuel program, operators can obtain the least expensive jet fuel from various supplier-branded locations and different fuel providers. Another advantage is when arranging fuel uplifts, business aircraft operators do not have to contact multiple fuel providers and do not need to maintain a number of different credit lines with various oil companies and fuel providers.

Contract fuel providers arrange fuel credit worldwide either with aviation fuel cards, often accepted on sight, or fuel releases when required. Some contract fuel programs assist operators in exempting or reclaiming value added tax VATand excise duties on fuel. They may also offer significant volume discounts for larger aircraft operators. These programs also offer expert knowledge on various airports worldwide, in terms of fuel, credit and service availability.

In other cases, you may need to uplift a certain volume in order to be exempt from ramp fees. Best practice is to check with your contract fuel provider on volume uplift requirements at various airport locations. Ensure that the contract fuel program is compliant with such things as Foreign Corrupt Practices Act FCPA regulations and that it follows all relevant regulations of the appropriate country. Ideally, the fuel program should have a wide scope of locations and a certain level of expertise at all the locations you operate or may operate to.

Widely-recognized contract fuel providers are capable of dealing with language barriers across the world and will assist in arranging credit and, when necessary, currency exchange. This is because a 3rd party is scheduling the fuel uplift, and you may face first-come-first-served situations or find that fueling priority is given to scheduled commercial carriers.

Your contract fuel provider, however, should be able to assist when such situations do arise. Please see our fuel checklist that allows operators to view what information a contract fuel provider requires to arrange aviation fuel for your trip, and also allows you to compare fuel prices among different providers.

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To ensure best fuel uplift results, look at locations where your contract fuel provider has contracts and the widest range of fuel availability. Always ensure that your fuel provider is experienced in arranging fuel at multiple locations and that fuel quotes include all charges and taxes that may be associated with your fuel uplift.

By Vicki Matso. PT 3 M minute read. Got a question for Vicki about this article? Tags aviation fuel. All rights reserved.The current standard prices for petroleum products are effective as of Oct. The current standard prices for aerospace products are effective as of Oct. Previous Standard Prices for Petroleum Products. The standard price of fuel is a tool that was created by Department of Defense fiscal managers to insulate the military services from the normal ups and downs of the fuel marketplace.

It provides the military services and the Office of the Secretary of Defense with budget stability despite the commodity market swings, with gains or losses being absorbed by a revolving fund known as the Defense Working Capital Fund.

In years that the market price of fuel is higher than the standard price, the DWCF loses money. In years that the market price is lower than the standard price, it makes money.

This gain or loss can be made up by adjusting future standard prices or by providing our DoD customers with a refund. This decision is typically made by the Office of the Secretary of Defense Comptroller.

However, the DWCF must remain cash solvent.

What to Look for When Choosing an Aviation Contract Fuel Program

As a result, in rare instances the standard price is changed during the fiscal year so the fund remains solvent. The standard price is established well in advance of the fiscal year it is used. It is built by assembling the following blocks:. The standard price of fuel is not a marketplace price. You cannot compare the standard price of fuel with the price of fuel at the service station down the block.

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It is not intended that the standard price of fuel be comparable with similar fuels in the commercial marketplace. Standard Prices are normally published before the start of the new fiscal year commencing annually on Oct. The posted MAP is a snapshot during the day. Since MAP is subject to constant change as fuel purchases are made, prices may vary from what is posted.

Skip to main content Press Enter.The largest operating cost center for airlines, on average, are the companies' fuel expenses and those expenses related to the procurement of oil.

When oil prices are increasing in the global economy, it's natural that the stock prices of airlines drop. When oil prices decline in the economy, it's equally natural that the stock prices of airlines go up. Fuel costs are such a large part of an airline's overhead percentage-wise that the fluctuating price of oil greatly affects the airline's bottom line.

To protect themselves from volatile oil costs, and sometimes to even take advantage of the situation, airlines commonly practice fuel hedging. They do this by buying or selling the expected future price of oil through a range of investment productsprotecting the airline companies against rising prices. In this hedging scenario, an airline would have to believe that prices will rise in the future. To mitigate these rising prices, the airline purchases large amounts of current oil contracts for its future needs.

This is similar to a person who knows that the price of gas will increase over the next 12 months and that he will need gallons of gas for his car over the next 12 months. Instead of buying gas as needed, he decides to purchase all gallons at the current pricewhich he expects to be lower than the gas prices in the future.

When a company purchases a call optionit allows the company to purchase a stock or commodity at a specific price within a certain date range. This means that airline companies are able to hedge against rising fuel prices by buying the right to purchase oil in the future at a price that is agreed on today.

Similar to a call option strategy, airlines can also implement a collar hedge, which requires a company to purchase both a call option and a put option. Where a call option allows an investor to purchase a stock or commodity at a future date for a price that's agreed upon today, a put option allows an investor to do the opposite: sell a stock or commodity at a future date for a price that's agreed on today.

A collar hedge uses a put option to protect an airline from a decline in the price of oil if that airline expects oil prices to increase. A collar hedge protects the airline against this loss. Finally, an airline can implement a swap strategy to hedge against the potential of rising fuel costs.

A swap is similar to a call option, but with more stringent guidelines. While a call option gives an airline the right to purchase oil in the future at a certain price, it doesn't require the company to do so. A swap, on the other hand, locks in the purchase of oil at a future price at a specified date. If fuel prices decline instead, the airline company has the potential to lose much more than it would with a call option strategy.

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aviation fuel contracts

Your Money.From the private pilot to the largest global airlines, Shell Aviation earns the loyalty of its customers by creating value through the safe and timely supply of high quality aviation fuels and a comprehensive range of high performance aviation lubricants and fluids. A full guide to the various grades and specifications of aviation gasolines and jet fuels and additives.

A safety data sheet SDS describes the hazards of substances and mixtures and makes recommendations for safe handling and use. Explore Aviation Fuel Products. AeroJet Premium aviation fuel. Avgas For piston engine aircraft. Military Jet Fuel Jet fuel grades and specifications. Grades and Specifications A full guide to the various grades and specifications of aviation gasolines and jet fuels and additives. Aviation Safety Data Sheets A safety data sheet SDS describes the hazards of substances and mixtures and makes recommendations for safe handling and use.

Shell Water Detector Make sure your fuel is water-free. Ask Shell Aviation Contact us for more information Contact us. Find what you need right now. Previous Next.The U. The program is based on a charge card that can be electronically swiped, mechanically imprinted or hand scribed onto a commercial delivery ticket DD The card user may not be a contractor.

The card user is responsible and accountable for all purchases. Review all purchases annotated on the receipt prior to signing.

The established policies and guidance to assist you are available for reference. Executive Order of Oct. Card users are considered government procurement officials when they purchase the fuel and services. Card users shall not misuse the card nor accept gratuities.

The card is authorized for official use only. The card provider reimburses the merchant for non-fuel items and directly bills the unit incurring these charges. The user must register through the Account Management and Provisioning System for access. The hierarchy levels were set up to provide effective controls, communication and overarching responsibility and support to the program. There are five hierarchy levels as well as the assigned card user. Skip to main content Press Enter.

DLA Energy. Energy Home. What Energy Offers. Aerospace Energy. Bulk Petroleum Products. Direct Delivery Fuels. Installation Energy. Government Fuel Cards. Bulk Petroleum Services.

Quality and Technical Support. Utility Services. Doing Business With Energy. Customer and Vendor Assistance.

Why Is Liberty University Selling Jet Fuel To The Pentagon?

Standard Prices. Prices to Web. Enterprise External Business Portal. DLA Energy Portal.Contract fuel arrangements are a hot topic in the FBO industry and a widening avenue for cutting costs for aircraft operators. AIN asked readers for their opinions about whether contract fuel brokers were worth the investment in time and energy.

For those on either side of the counter who have not yet been approached by a contract fuel broker, it works this way: the broker serves as a middleman, promising fuel discounts to aircraft operators and a steady flow of new customers to FBOs.

By fattening a list of aircraft operators on one side of his ledger and FBOs on the other, the broker makes his network that much more appealing to both constituencies. For each transaction, the broker pockets a portion of the discount as a fee for bringing the two together.

In some cases, the contract fuel provider also offers other services such as flight planning, billing and so on.

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For an operator, the attraction is being able to look at the list of FBOs in the network and make trip arrangements to stop at as many as possible. The FBO wants to see defining evidence that it was the broker that brought the aircraft to his ramp. So how well does the system work? For Boeing pilot Ray Roberts, it works well, with some caveats.

Some pilots get lazy and want to call and let the companies do their flight plan filing and customs preps. We track this on each flight we complete. Joseph Monia, a Learjet pilot, has another view. I would suggest that if you undertake a fuel savings program you first check out the places that you have to go to get the savings and the inconvenience that poor service has on your continued flight. You might not save the same amount as you would with a contract service, but the other services you receive can make up for ineptness, such as putting jet-A in a flushing john on your airplane.

Some require preauthorization, which can sometimes be done by cellphone after arrival at the facility.

Contract Fuel: Is It Worth It For You?

Checking out which FBOs use which program can take the most time before a trip, but the savings are usually worth it.

I would estimate that using contract fuel saves us at least 20 percent on average for transient fuel purchased. Finally, Tom Lissner, chief pilot for an operation that fields a Boeinga Citation and a King Airis pleased with his service. Scan the list of qualified FBOs and make a simple phone call for prearrangement. In some cases this is not even necessary.

By doing so, we save between 25 and 35 percent on jet fuel. Works for us. As with any dynamic market situation, however, sellers react to new market forces with new tactics of their own. While aircraft operators understandably explore all avenues for deeper and deeper discounts to ease their fuel costs, there comes a point of diminishing return for the service providers.

They find their own ways to cope.

Aviation Fuel

The economic reality is that FBOs need to sustain a viable profit margin to stay in business. The size of that margin depends on their overhead expenses, which vary widely from location to location, and FBO to FBO on the same airport. Savvy FBOs know how much it costs them to pump every gallon of fuel they sell, so determining what constitutes a reasonable profit margin is simple arithmetic.

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aviation fuel contracts

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