Vietnam: New Aviation Fuel License to Open Market
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Monday, 21 September 2009 |
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The Civil Aviation Administration of Vietnam (CAAV) has approved a new
license to allow Petrolimex Jet Fuel Joint Stock Company (PJF) to
supply air petrol this month. The decision has been expected for a long
while, indicating that the monopoly on the aviation fuel market is
changing.
Previously, various interest groups and economists urged the
government agencies to license more aviation fuel suppliers in order to
end the Vinapco monopoly, which has been blamed for many
problems. One year ago, Vinapco, unilaterally stopped
providing air petrol to Pacific Airlines because of disputes between
the two companies, forcing the air carrier to delay 30 flights in April
2008. At that time, Pacific Airlines did not agree to pay a petrol fee
to Vinapco because their contract with Vinapco, signed on December 31,
2007, listed a petrol fee of 593,000 dong per ton. Vinapco later raised
the fee to 750,000 dong per ton.
When asked to comment about the recent approval of PJF to the air
petrol market, General Director of Vinapco, Tran Huu Phuc, said that it
is quite normal in a market economy to have more than one product
supplier. Two enterprises applied to join the air fuel market,
including PJF and Tan Son Nhat Petrol Commercial Joint Stock Company
(Tapetco). However, only PJF has been approved. Both the companies
anticipated that CAAV would choose only one company, yet both invested
in material and technical facilities and are ready for operation.
CAAV Deputy Head Lai Xuan Thanh said that PJF’s licensing supports the
Government’s policy on raising the number of fuel suppliers at
airports. Le Van Huong, Director of PJF, said that the company is
well-prepared to supply aviation fuel and some airlines have already
made enquiries to set up contracts for the purchase aviation fuel.
Currently, PJF will supply air petrol at Tan Son Nhat airport but still
has to negotiate agreement with Southern Airports Corporation.
In Vietnam, Tan Son Nhat airport accounts for 56-60 percent of the
total demand of aviation fuel. Petrolimex General Director Bui Ngoc Bao
revealed that the fuel supply at Tan Son Nhat airport is the initial
phase of the Petrolimex and PJF business strategy. Petrolimex is
seeking to sell air petrol at other airports in Vietnam as well in
order to expand the market share and effectively compete with other
suppliers.
PetrolWorld 180909 Source: VietNamNet
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