IATA Global Forum discussed competitive market of aviation fuel in Russia as an example of the best world practice
“Aviation fuel is no longer a cause of an unreasonable growth of the costs of air transportation. Furthermore, changes on the aviation fuel market have become one of the main institutional preconditions for a sustainable growth of air carriage on domestic and international routes”.
The statement was made by Deputy Head of FAS Anatoly Golomolzin who on 17 May 2017 was a speaker at the Global Aviation Fuel Forum organized by International Air Transport Association (IATA) in partnership with “Gazprom Neft”.
The 74th International Aviation Fuel Forum Aviation Fuel Forum for the first time took place in Russia, in St Petersburg. It brought together the record number of participants - 650 delegates from 61 countries. 57 largest airlines of the world and more than 100 suppliers of fuel and equipment for aircraft refueling were presented. The Forum participants discussed adopting the common international standards of aviation fuel supply, use of digital technologies for data transfer in the aviation fuel sector, the prospects of developing the markets of oil products and trading sites in various regions of the world.
Hemant Mistry, IATA Director for Global Airport Structure and Fuel, said: “We are happy with the opportunity to hold the International Aviation Fuel Forum in St Petersburg, the city with great history. The key role in selecting Russia as the event site played positive changes and developments of the aviation fuel supply market in Russia, particularly, adopting competitive pricing mechanisms and price transparency, modernizing the aviation fuel infrastructure in airports and improving fuel supply technologies”.
Anatoly Golomolzin said that “at the Forum, Russia was represented by the Federal Antimonopoly Service and participants of the Russian market of aviation fuel and aviation fuel supply, including oil companies, operators of refueling complexes in airports, airlines and SPIMEX St Petersburg International Mercantile Exchange). At a special session, Forum participants learned about the large-scale work undertaken in Russia and designed to create competitive markets of aviation fuel and aviation fuel supply and transparent market pricing”.
Summing up the results of many-year efforts, Anatoly Golomolzin pointed out: “The non-competitive market of aviation fuel in Russia of ten years ago, characterized by the desire of large oil companies towards geographic market division, suboptimal transport logistics, non-transparent resale chains and imposing disadvantageous services, has been transformed into the federal competitive market of aviation fuel with competitive pricing mechanisms (direct contracts between airlines and oil companies on the price formulae, based on tender and exchange trading results that will expand their boundaries from the national to international ones), possibility to choose an alternative refueling complex. This market has been in operation for already five years. In the natural-monopoly segment of the market non-discriminatory access to the airport services is guaranteed, including the refilling complex; regulating prices (tariffs). As a result, the costs of aviation fuel are reduced to the optimal competitive level”.
Reference:
IATA — International Air Transport Association, a non-governmental professional organization. The Headquarters is in Montreal (Canada). The European Centre is located in Geneva (Switzerland). IATA has 117 representative offices across the globe. IATA members are 265 airlines that execute 83% of all international flights. The Association coordinates and represents the interests of the air transport sector in such areas as flight safety, flight operation, tariff policy, maintenance, aviation security, aviation fuel supply, developing the international standards jointly with the International Civil Aviation Organization (ICAO), etc.
