Avfuel Pinpoints New Solutions and Ramps Up Support in 2020

posted on 3rd December 2020 by Parveen Raja
Avfuel Pinpoints New Solutions and Ramps Up Support in 2020

While carbon offsetting provides a simple solution to emissions reductions, the most effective solution to reach aviation’s sustainability goals remains the widespread adoption of sustainable aviation fuel (SAF). To this end, Avfuel continues to work with producers for enhanced availability. As of NBAA-VBACE, the Avfuel staff has made great headway and is on the cusp of exciting announcements regarding SAF availability.

Once a larger scale of SAF product comes to fruition, Avfuel looks forward to launching a book and claim model. Through this system, operators anywhere in the world will be able to offset their emissions by purchasing SAF from Avfuel on a credit-per-gallon basis.

Managing Price Risks

In addition to sustainable solutions, Avfuel turned its attention to price risk management. Though the industry is experiencing 10-year lows on fuel prices, analysts increasingly expect those prices to rebound and exceed pre-pandemic levels. As customers try and budget in such a volatile market, Avfuel rolled out two new solutions to help them take the uncertainty out of fuel prices: fixed forward pricing (FFP) and capped pricing.

As a simple solution to mitigate financial risks, an FFP agreement allows customers to buy a fixed monthly quantity of fuel at a fixed price over a specified period of time. This enables operations to stabilize cash flows and secure fuel costs; ensure margins and have confidence in budgeting; and benefit from price stability for 12 – 36 months.