LookAtVietnam – The Civil Aviation Administration of Vietnam (CAAV) issued permission to allow Petrolimex Jet Fuel Joint Stock Company (PJF) to supply air petrol on September 15.

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 air petrol and some airlines have already contacted the company to purchase air fuel.

At present, PJF will supply air petrol at Tan Son Nhat airport. However, under current regulations, PJF still has to negotiate with Southern Airports Corporation, which controls Tan Son Nhat airport, to obtain permission to sell petrol.

The demand for air fuel at Tan Son Nhat airport is now accounting for 56-60 percent of the total demand.

Petrolimex General Director Bui Ngoc Bao revealed that the fuel supply at Tan Son Nhat airport is only 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.

VietNamNet, TT