AVIATION FUEL: CAN THE RISING COSTS BE ABSORBED?

It is predicted that aviation fuel prices will rise 15-20% by 1985. In the last ten years, fuel's share of total operating costs has risen by seven percentage points and airlines have contained the growth somewhat by applying servere cost-cutting programs while raising fares. In the coming years the carriers are going to have to pay. However, the question of whether airlines will be able to accommodate higher operating costs is becoming critical. Factors that should be considered in forecasting include: the situation in Iran; the reluctance of the major suppliers to refine and sell JP4; the European phenomenon in which an airline is informed by its supplier of a heavy price increase. A possibility that could provide significant savings is the relaxation of specifications for refining aviation fuel. Swissair's fuel related cost cutting programs are noted. The success of the programs is due to the positive attitude of personnel towards economy rather than to sophisticated management systems or technologies. Many experts opine that airline deregulation and international open skies will aggravate the problems of fuel consumption.

  • Availability:
  • Corporate Authors:

    Interavia

    86 Avenue Louis Casai
    1216 Cointrin-Geneva,   Switzerland 
  • Authors:
    • Tallon, P
  • Publication Date: 1979-2

Media Info

  • Pagination: p. 167-169
  • Serial:
    • Interavia
    • Volume: 34
    • Publisher: Jane's Information Group
    • ISSN: 0020-5168

Subject/Index Terms

Filing Info

  • Accession Number: 00194517
  • Record Type: Publication
  • Source Agency: Interavia
  • Files: TRIS
  • Created Date: Jun 30 1979 12:00AM