Aeromexico rated the opening of the jet fuel market in Mexico as positive, as a result of the energy reform.
In Mexico, Airports and Auxiliary Services (ASA) is the decentralized public body and the main participant in the distribution of jet fuel for use in aircrafts in Mexico.
Through its Fuel Division, ASA manages, conserves and maintains a network of 60 aviation fuel stations and a supply point in Mexico, and has done so for more than 33 years.
Today, Aeroméxico has fuel agreements with ASA, as well as with other suppliers that recently entered the Mexican market, which establish the terms of payment, credit and guarantees, the requirements for fuel quality and the procedures to establish the quantity. and price of jet fuel.
As a result of the energy reform approved by the Mexican Congress in 2013 and the new Hydrocarbons Law that was promulgated in 2014, certain activities that historically only ASA carried out, such as the transport, storage and commercialization of jet fuel, were opened to others. market participants authorized by the Energy Regulatory Commission (CRE).
As of December 31, 2020, the company operated more than 283 passenger flights daily, flying to 41 domestic destinations and 31 international destinations from Mexico, including 13 in the United States, 3 in Canada, 7 in South America, 4 in Central America and the Caribbean. 3 in Europe and 1 in Asia.
Aeroméxico has fuel supply agreements with both ASA and other private suppliers.
These agreements establish the terms of payment, credit and guarantees, as well as the requirements for the quality of the fuel and the procedures to establish the quantity and price of the jet fuel.
Even ASA continues to be the airline’s main jet fuel marketer in Mexico, and one of its most important fuel suppliers.
However, “the positive impact of competition in the commercialization and logistics of this hydrocarbon has made it possible to improve the commercial conditions of supply of this input in the national market and, as a consequence, Grupo Aeroméxico has concluded supply agreements with other suppliers of the private sector,” the company said.
World Fuel Services Mexico
Aeromexico’s current agreement with ASA expires on December 31, 2021, and may be terminated by the airline with 30 days prior written notice or terminated or terminated by ASA in the event of breach of contract obligations.
On the other hand, Aeroméxico’s jet fuel supply agreement with its supplier at the Mexico City International Airport, World Fuel Services México, expires until 2022 and may be terminated by either party only in the event of non-compliance.
To conclude, jet fuel costs represent the most important item of the airline’s operating expenses, which comprised 11.6 and 29.7% of its total operating expenses for the period ended December 31, 2020 and the year ended December 31. 2019, respectively.