Jump to content


Photo
- - - - -

Fuel Prices & Operational Changes


  • Please log in to reply
2 replies to this topic

Poll: Jet Fuel and Operations (3 member(s) have cast votes)

Has jet fuel prices impacted your operations?

  1. No (2 votes [66.67%])

    Percentage of vote: 66.67%

  2. Yes, Limiting Training/ PR Flights (1 votes [33.33%])

    Percentage of vote: 33.33%

  3. Yes, We are taking a closer look at patient's need (0 votes [0.00%])

    Percentage of vote: 0.00%

  4. Yes, We are looking into switching aircraft to more fuel efficient or single engine (0 votes [0.00%])

    Percentage of vote: 0.00%

Vote Guests cannot vote

#1 Rob

Rob

    Advanced Member

  • Members
  • PipPipPip
  • 39 posts

Posted 07 April 2008 - 03:08 AM

IATA as of last week has shown that jet fuel prices are up 62% since 1 year ago. Looking around the country, the price of jet fuel ranges from $4.50-7/ gal in Florida, $6-7.50/ gal in the Metropolitan Area of NY, and $4.50-6/ gal in California. Has this had an front end impact of your air operations (rotor or fixed)? I know some fixed wing providers are adding fuel surcharges like the airlines and delivery companies such as DHL/ Fed Ex, etc. Has any operations "scaled" back flights due to the costs? These could be outreach flights, training, etc. What about scaling back patient flights or re-evaluating which patients should be flown?

Economics do play a large role in any business and some tough decisions are made because of these issues. I see some challenging aviation times ahead that may cause operators to rethink the way they do business. Could this be more influx of single engine aircraft (less fuel burn)? Could some smaller operators get out of the business or declare bankruptcy like a lot of the low cost airlines? Could the amount of patient flights decrease by completing them by ground (although diesel is hitting over $4/gal in many markets)?

Only time will tell where all of this is going, but I suspect that the industry will change if the costs keep outpacing the revenue side of things.

Rob
  • 0

#2 Mike Mims

Mike Mims

    Advanced Member

  • Moderators
  • PipPipPip
  • 1668 posts

Posted 07 April 2008 - 04:16 AM

Me personally, with the amount of profits being made, I don't think it'll effect many programs at all.
If so, they'll supplement the fuel cost through higher rates.
Hard to justify raising rates when you already charge 10, 15 or 20K per flight with having an AC that cost $900.00 per hr flight time RW (that's on the high end)
  • 0

Mike Mims

Aircare

University of Mississippi Medical Center


#3 Macgyver

Macgyver

    Advanced Member

  • Members
  • PipPipPip
  • 868 posts

Posted 07 April 2008 - 10:18 AM

No change - FW vendor has a fixed rate per mile / fuel exclusive contract, so we get billed for the miles flown (total) and the fuel bought at the pickup and/or destination and what it takes to re-top-up the tanks after the flight is over. Fuel used for training/maintenance is built in to the overhead "per mile" charge so I guess it could mean that when the 5 year term is up the rate will be adjusted - and in the meantime less flying might be done that is not revenue flying. But since the training and maintenance flights are pretty much required - my guess is that they will be forced to eat the cost increase (if they didn't make allowances for fuel cost increases) for the required minimum flight hours etc.

But just as a note - when auto gas was an average of US$1.50 a gallon (C$0.60 per liter) where we are based the price was C$0.80 per liter (US$2.00 a gallon) and in the communities we fly into, closer to C$1.00 a liter (US$2.50 a gallon). The Jet A that we had to buy while there just to get home again was a LOT more...

Now the gas cost is more like C$1.36 a liter (US$5.10 a gallon)...and yes, the exchange rates were factored in both for then and now. So in the communities, with gas at C$1.60 a liter (US$6.00 a gallon) so you can just imagine what Jet A costs in someplace like Holman Island or Pelly Bay... :o
  • 0
Ken BHSc, RN, REMT-P