This update is intended to share ongoing activities supported by IATA to provide financial relief during the COVID-19 crisis and help lower costs and assist with reactivation once the crisis is over. Airlines’ feedback and information about places where similar initiatives could be replicated or about additional initiatives will be welcome; please reply to this e-mail or write us at fuelteam@iata.org.

Virtual Fuel Conference

The registration mails and agenda for the Virtual Fuel Forum on May 19th and 20th have been sent out. Airlines and Strategic Partners are welcome to attend. If you have not received the invitation and would like to participate, please contact us at iaff@iata.org.

Defueling and temporary fuel storage procedures – update

The relevant authorities from Denmark, Estonia, Germany, Ireland, Italy, Spain, Sweden, United Kingdom issued temporary authorization for theuse of Biobor JF in Commercial aviation. These separate derogations are based on ARTICLE 55(1) of the EU Regulation NO 528/2012.

Contact: Rommy Ulloa or Mark Vaughan

Bolivia: Revision of fuel pricing methodology

After the initial letter sent jointly by IATA, ALTA, and ALA to the Bolivian Government requesting a change in the fuel pricing methodology, other trade organizations have echoed the request. As authorities seek ways to assist recovery post-crisis, they have approached us for additional input, which is being provided in a new letter to the National Oil Agency (ANH – Agencia Nacional de Hidrocarburos). The price of fuel used for international flights in Bolivia is severalfold current market prices, at over 3.6 USD/Gal.

Contact: Daniel Chereau

Greece: Olympic Fuel Company

OFC has informed IATA that they have taken a set of measures to avoid increases in fuel fees:

  • OFC is benefiting from a 50% reduction in airport rental for the next 3 months
  • The government has provided a reduction in their tax obligations of 25% for the next 2 months

OFC expects the above measures to be extended, and they have drastically reduced their opex to avoid increasing fees as a last resort. Should OFC run out of cash, 0% loans are also available before evaluating increases in fees.

Contact: Gerardo Mesias

Spain: AENA reduction of airport rental fees – including fuel facilities

A major concern for the recovery phase of the current crisis are potentially increased infrastructure fees, covered in an IATA paper distributed in an earlier weekly update and reattached here for reference. While a few airports and suppliers have been increasing their fees in an attempt to offset lower throughput volumes, others have taken action to alleviate costs throughout the supply chain. One such example is Spanish airport authority AENA, which cut all airport rental fees by 75%, including the area used for fuel facilities. This will help keep unit costs down for companies operating fuel facilities at all Spanish airports. IATA is preparing a version of the infrastructure paper to be shared beyond the airline community and assist lobbying activities. This, together with examples like AENA’s, should help to advocate for similar results in other locations.

Contact: Alexander Kueper or Malvyn Tan

COVID-19 impact assessments by IATA Economics

IATA’s latest assessment of the impacts of the current crisis focuses on the “cost of air travel once restrictions start to lift”, including potential effect of increased infrastructure charges. More information and updated resources are available for download, as usual, by clicking the link below to IATA Economics’ site.

More information: visit IATA Economics