Open Access fuel supply has been embraced by the airline industry, including IATA, as a best practice model for airports. By increasing the competition to supply fuel and therefore helping drive prices down, it can maximise fuel uplift at the host airport, encourage new routes, and support previously marginal routes – helping to underpin passenger numbers and footfall, and so can be a significant benefit for both airlines and airport fuel operators.
eJet International’s MD John Pitts was at the forefront of developing the first Open Access fuel supply model in Hong Kong in 1998, evolving from similar, but different models operating across North America. Open access is suitable for new mid to large-sized airports and at existing airports, for example, where there is the possibility for change (e.g. when existing operator/fuel consortium contracts are expiring).
What is the Open Access fuel supply model?
Open Access fuel supply is where, in return for a fee, any suitably qualified party (oil company for example) may use the airport’s fuel facilities for delivery of fuel to aircraft regardless of whether they are an owner of the facilities or not. The model covers fuel supply from the point of entry into the airport right through to uplift at the aircraft.
Key outcomes for airport operators include:
- Maximising airlines’ choice in the fuel supply chain
- Creating more competition among fuel providers
- Encouraging airlines to maximise their fuel uplifts
- Driving sales revenue.
- Encouraging airlines to open new routes, with their associated passenger benefits.
Why use eJet for Open Access modelling?
As well as pioneering this model in Hong Kong, we have had similar involvement at other airports including Dublin, Luxembourg, Delhi International Airport and new Bangalore International Airport.
Therefore our experience is second to none.
For airports and airport operators: We can structure an Open Access platform for a client based upon the bespoke nature of each supply chain. eJet can prepare all the relevant agreements, and then support the implementation of Open Access.
Fundamental to this is the correct allocation of risk and Aircraft Refuelling Liability in each supply chain, and how the liability is then covered by insurance and/or indemnification. We have unique expertise and we routinely advise on these issues.
We can work throughout the supply chain when required:
For fuel suppliers: We can advise clients if they are required to respond to an open access situation. We can assist if you are planning to participate in an open access supply chain.
For airport operators: eJet can provide audit and inspection to ensure operations are well-managed, risk assessed and driving revenue efficiently.