As the cost of jet-A creeps ever upwards, the price last month at several Washington, D.C.-area airport FBOs hovered near $9 per gallon. Signature Flight Support, the lone provider at Reagan National Airport, posted a pump price of $9.18 a gallon, which was still less than the $9.24 per gallon it listed in early March 2011.
Boeing employees last week rolled out the first 787 Dreamliner built at the new production rate of five airplanes per month, the company announced today. The 83rd Dreamliner ever built, the airplane marks the passage of yet another milestone in Boeing’s quest to raise its production rate to 10 per month by late 2013.
Adverse oil prices and cut-throat rivalry have left airlines scrambling to limit losses with the increasingly attractive option of jet-fuel hedging. Although a complex exercise, hedging essentially involves locking in a forward fixed price, allowing an increasing number of airlines to avoid surprises from unforeseen cost fluctuations. Today, jet-fuel hedgers trade contracts in Singapore, Rotterdam, the U.S. Gulf Coast or New York, as well as crude and heating oil or gas oil in London and New York, the two most liquid swaps and options markets.
In an effort to raise the bar on customer service, the Air Elite FBO network has joined forces with training providers Ritz-Carlton Leadership Center and ServiceElements. Formed last year from the remnants of the former ExxonMobil Avitat network, the fledgling Air Elite brand comprises 25 FBOs, including nearly all of the former U.S. Avitat locations, which decided to remain together after the oil company pulled the plug on its support of the brand.
Global energy, petrochemicals and metals information provider Platts launched a jet fuel microsite yesterday aimed at the energy information needs of the aviation industry. “We’re pleased to introduce a one-stop source of global jet fuel news and price data that we believe will further enhance transparency in and broader understanding of the aviation fuel markets,” said Platts global editorial director of oil Dave Ernsberger.
Oil speculators’ uneasiness over the resurgence of the “Arab spring” is the main factor driving jet-A prices ever closer to–and in some cases beyond–$6 per gallon, according to aviation fuel consultant Mark Wagner. Jet-A prices in the continental U.S. are now averaging $5.64 per gallon, ranging from $3.94 in the Great Lakes region to $6.01 in the Eastern region, current data from AirNav shows.
The price of Brent Crude, which is refined to make jet-A and other fuels, continues to rise and stood at $124.20 per barrel late yesterday.
What does it take to make a million barrels of “green” oil a day? According to San Diego, California-based Sapphire Energy (Hall 3 E118), the answer lies in combination of new environmentally friendly technologies. Sapphire aims to be producing about 67 barrels (2,800 gallons) of its fuel per day by 2014. By 2018, it hopes to be producing between 5,000 and 10,000 barrels of green crude per day.
Federal officials said they would move quickly to circumvent and appeal a U.S. District Judge’s injunction on June 22 to overturn President Obama’s six-month ban on new deepwater offshore oil drilling in the Gulf of Mexico. The President imposed the ban after the April 20 Deepwater Horizon explosion. Under the ban, the Interior Department stopped issuing new drilling permits and halted drilling at 33 exploratory wells.
Federal officials said they would move quickly to circumvent and appeal a U.S. District Judge’s injunction Tuesday to overturn the Obama Administration’s six-month ban on new deepwater offshore oil drilling in the Gulf of Mexico. Under the ban, which was imposed shortly after the April 20 Deepwater Horizon explosion, the Interior Department stopped issuing new drilling permits and halted drilling at 33 exploratory wells.
Chevron Global Aviation, which operates five oil refineries, “will withdraw from marketing Chevron- and Texaco-branded aviation fuels in 27 states [approximately 200 locations],” the company said in a statement issued last week.