At airports across Canada, facilities and equipment necessary for the refuelling of aircraft at the terminal area are most often owned by a Fuel Consortia, a not-for-profit corporation. The consortium allows any airline that flies to a participating airport to join as a member. Member airlines share in the net costs of the corporation, which generally equates to a cost savings for the entire membership. Refuelling of non-member airlines is provided at a rate that is higher than the member airline rate, with the increased cost as an offset to the commitments member airlines have undertaken.
Benefits of Fuel Consortiums
Rising aviation fuel costs have made effective management and efficient distribution of aviation fuel supplies an industry priority. Aviation fuel costs constitute up to sixty percent of an airline’s operating expenses. Airports benefit in many ways when fuel consortiums are owned and operated by airlines. The need for airport staff expertise is reduced when the design, construction and operation of fuel facilities and infrastructure is undertaken by the consortium relieving the airport of those responsibilities. It is also easier for an airport to work with a consortium with regard to lease terms and master planning.