United Kingdom
United States
Asia Pacific
Airlines consider fuel "buying group"
Global airlines should consider collective fuel buying to save money, Malaysia Airlines Chief Executive Idris Jala said on Tuesday, and called on trade body IATA to study the idea.
“I suggest IATA put together a little group, a fuel-buying house,” Jala, formerly an executive with oil giant Royal Dutch Shell, said during a panel discussion at IATA’s annual meeting in Paris. “My previous employer would probably not like this idea”.
“If you pool together, you get volume discounts,” he said on the sidelines of the event. “If three airlines get together, it could work, imagine 10 airlines getting together.”
Lufthansa CEO Wolfgang Mayrhuber supported the suggestion: “I think it’s worthwhile to look into the idea.”
Jala said it was time for carriers to roll up their sleeves and study whether it might work.
“My suggestion is that IATA do a study on it,” he said. “What are the mechanics, how do you get participants into it… take a look at the various jurisdictions, (and the issues of) competition and anti-trust.”
Airline bosses struggling to contain operating costs blame part of their woes on jet fuel prices, which have risen even faster than crude oil because of high demand and bottlenecks in refining, a problem exacerbated by last year’s Hurricane Katrina which damaged US refineries.
Jala, who is spearheading deep cost-cutting measures at Malaysian including slashing staff and domestic routes, noted the airline would have turned in record profits in 2005 if jet fuel had stayed at 2004 levels, but instead posted a record loss.
Graham Muldoon
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Boy falls to death on cruise ship
Turkish Airlines flight in emergency landing after pilot dies
Unexpected wave rocks cruise ship
Woman dies after going overboard in English Channel