Avfuel, a global supplier of aviation fuel, announced a new Fixed Forward Pricing solution (FFP) at the opening day of the National Business Aviation Association’s European Business Aviation Conference and Exhibition (EBACE) on Monday.
The option is part of the company’s Price Risk Management Program that’s been in place since 2020. In a statement, Avfuel’s spokesperson, Muneeb Ahmed, director of trading and logistics, said the company believes it could be a year before there’s a balance in supply and demand again. adding, “While fuel prices are high, we anticipate they’ll continue to rise.”
Ahmed said the FFP program would “offer customers a fixed price below current market values, saving customers money while providing stability.”
The agreement allows customers to buy a fixed monthly quantity of fuel at a fixed price. This enables operations to stabilize cash flows, secure fuel costs, ensure margins, have confidence in budgeting, and benefit from price stability for 12 to 36 months.
Additionally, Avfuel will also offer capped pricing agreements in its Price Risk Management Program, which allow for no fixed minimum prices and minimum volume commitments for 12 to 24 months. This means that customers won’t have to pay more than their maximum price, even as market conditions might force prices to increase. Alternatively, the customer pays the lower price when the market dips below its capped price.
This program comes as global reports of disruptions in the fuel supply chain continue, and GA pilots and companies try to figure out ways to deal with these issues.
“Pre-planning as far ahead as possible is ideal for mitigating costs or the risk of flying into airports with little fuel,” said Heath Beasley, Avfuel’s operations manager who oversees the company’s trip support service for clients, in an interview with FLYING earlier this month.
More FBOs Join The Team
In other company announcements Monday, Avfuel said that since the beginning of the year, it has added 13 new branded FBOs and 47 contract fuel locations—19 outside the U.S. Locations of these new FBOs include:
- Revv Aviation (K06C) in Schaumburg, Illinois, in the Chicago metro area
- Cutter Aviation (KGTU) in Georgetown, Texas, in Austin metro area
- Marco Island Executive Airport (KMKY) on the west coast of Florida
- Immokalee Regional Airport (KIMM) in southwest Florida
- Everglades Airpark (X01) in south central Florida
NATA Sustainability Designation
Avfuel also announced that it applied for and was found to meet the requirements for NATA’s Sustainability Standard for Aviation Businesses.
“We’re proud to join the ranks of some of our branded FBOs—Duncan Aviation, Million Air, and Ross Aviation—who also committed to the NATA Sustainability Standard for Aviation Businesses,” Marci Ammerman, vice president of marketing for Avfuel, said. “We always strive to be on the leading edge of sustainability initiatives to support, inspire and guide sustainably-minded operations across the Avfuel network.”
NATA created its Sustainability Standard for Aviation Businesses to provide aviation businesses with a self-certification process for pursuing flexible options to lower their carbon footprint. It was developed by NATA’s Environment Committee, which is doing what it can to help reduce greenhouse gas emissions, increase the use of cleaner energy, and reduce waste across all flight operations.
Avfuel was designated as a Green Aviation Business-Tier 1 at its Ann Arbor, Michigan, headquarters, making it just one of 24 locations to receive a designation under the standard.