AFRAA renews and widens joint aviation fuel purchase deal


Information from Nairobi has confirmed that the African Airline Association is in the process of renewing a joint fuel purchase deal for 2013, renewing a previous deal put into place in 2011/12. A tender has reportedly been issued for up to 1 billion litres of Jet A1 fuel to be supplied for the duration of the 1 year contract to participating member airlines.

During the initial agreement some 7 airlines, out of 34 members, including Ethiopian and Kenya Airways, were part of the joint purchase project, while this year twice as many have come on board.

The volume of pooled fuel purchases, though individually paid, made some 660 million litres of fuel and is this year expected to rise to over a billion litres of Jet A1.

The source in Nairobi claimed that Kenya Airways alone made savings in 2012 of almost 2 million US Dollars under the joint purchasing agreement, which would make AFRAA’s initiative one of the financially most valuable action plans for their member airlines, at least for those signed up and create a mighty incentive for more to come on board in the future.

AFRAA is based in Nairobi and represents member airlines in negotiations with governments and global aviation bodies to which it is either a member or affiliated to. Watch this space for aviation news.