ANN ARBOR, Mich. / December 2, 2020 / AVIATION NEWS – While the aviation industry faced an abundance of hurdles throughout 2020, Avfuel Corporation’s team buckled down and spent a vast amount of resources listening to customer needs. The result has been a rollout of new solutions for sustainability and price risk management, and increased support across its divisions as an all-round aviation services facilitator.
On the sustainability front, Avfuel’s expert team is committed to providing solutions that make it easy being green as the aviation industry works to reduce its carbon emissions. To move this mission forward, Avfuel launched its Carbon Offset Program in early 2020 to provide an immediate solution for emissions reductions, offsetting approximately 100 gallons of jet fuel per carbon credit purchased. Operators can choose to offset their carbon emissions by either designating a specific number of gallons to offset when creating an Avfuel Contract Fuel authorization online, or by opting to offset emissions from all gallons of fuel purchased through Avfuel.
While carbon offsetting provides a simple solution to emissions reductions, the most effective solution to reach aviation’s sustainability goals remains the widespread adoption of sustainable aviation fuel (SAF). To this end, Avfuel continues to work with producers for enhanced availability. As of NBAA-VBACE, the Avfuel staff has made great headway and is on the cusp of exciting announcements regarding SAF availability.
Once a larger scale of SAF product comes to fruition, Avfuel looks forward to launching a book and claim model. Through this system, operators anywhere in the world will be able to offset their emissions by purchasing SAF from Avfuel on a credit-per-gallon basis.
Managing Price Risks
In addition to sustainable solutions, Avfuel turned its attention to price risk management. Though the industry is experiencing 10-year lows on fuel prices, analysts increasingly expect those prices to rebound and exceed pre-pandemic levels. As customers try and budget in such a volatile market, Avfuel rolled out two new solutions to help them take the uncertainty out of fuel prices: fixed forward pricing (FFP) and capped pricing.
As a simple solution to mitigate financial risks, an FFP agreement allows customers to buy a fixed monthly quantity of fuel at a fixed price over a specified period of time. This enables operations to stabilize cash flows and secure fuel costs; ensure margins and have confidence in budgeting; and benefit from price stability for 12 – 36 months.
Capped pricing agreements—as the ultimate price risk management solution—allow for no fixed minimum prices and no minimum volume commitments for a term of 12 – 24 months. As such, customers never pay more than their maximum fuel price, even when the market rises above it. But when the market dips below their capped price, the customer pays the lower price.
Both programs can be extended to include carbon offsetting and sustainable aviation fuel to help operators reach their emissions reductions goals.
Of course, Avfuel continues to assist its customers across its broad spectrum of departments and services. Avfuel’s aviation insurance division, Avsurance, has experienced a landmark year in keeping aviation policyholders protected amidst the special considerations of a pandemic. Meanwhile, Avfuel’s trip support and flight planning division, Avplan, has supported an expansive increase in requests as operators seek assistance navigating special pandemic regulations that seemingly change every day—having a group of people to call 24/7 that is already well versed in the current regulations makes it tremendously easier for operators to focus on passenger requests and the safety of the flight.
In its commercial fuel division, Avfuel’s experts have focused extensively on logistics. As the world navigates its response to the COVID-19 pandemic, it has increasingly relied upon air transport for the efficient movement of lifesaving PPE and medical supplies. Now, the industry is prepping for some of its most precious cargo yet: the long-awaited COVID-19 vaccine.
In anticipation for this development, Avfuel’s positioning its team and communicating with carriers on solutions to support these integral missions on a global scale, including: short-notice assistance with 24/7 operations support; arranging support at major ports of entry, tech stops, and stops in alternative markets to avoid congestion or accommodate parking needs; short- and long-term fuel supply needs; and coordinating any possible tax exemptions.
Ensuring a smooth, efficient distribution system for the vaccine will require an extensive amount of logistical preparation across the industry; Avfuel stands ready to support these efforts, listening to its customers’ needs and adapting its services every step of the way.
Those visiting the Avfuel booth at NBAA-VBACE can meet with staff members from Avfuel’s sales and marketing divisions while learning more about the comprehensive services the fuel supplier provides, including: sustainability, fueling locations, contract fuel, loyalty rewards, insurance, trip planning and flight support, full-load and bulk fuel sales, and more.
ABOUT AVFUEL CORPORATION
Avfuel provides fuel and services to the global aviation industry and is the leading independent supplier in the United States. Established as a supply and logistics company 45 years ago, Avfuel is core competent in every aspect that surrounds the delivery of fuel – from refinery to wingtip. Avfuel combines global access with personalized service throughout a fueling network of more than 3,000 locations worldwide and 650+ Avfuel-branded dealers. Our 100% dedication to aviation demonstrates our passion and commitment to a global community that prospers on the movement of goods and services around the world.