Aviation Fuel to Be Supplied to Airports Based Only on Long-Term Contracts

Wednesday, Oct 29, 2008

The Russian government has decided that aviation fuel will be supplied to airports based solely on long- term contracts, Deputy Prime Minister Sergei Ivanov said. ""A decision on this score has been made: contracts will be long- term, for about a year, and the prices will be tied to market prices for oil products,"" Ivanov said at a conference dealing with the situation in the aviation sector.

Ivanov also proposed discussing the reduction of a term within which airlines can sell tickets in advance. At the present time, airlines sell tickets half a year ahead, ""and, given the volatility of kerosene prices, this causes problems,"" Ivanov said. ""Tickets are sold, but there is not enough working capital,"" he explained.