Kazakh flagship carrier says scarcity of jet fuel threatens its operations. What’s there in store for us?

Asia-Plus

Air Astana JSC, Kazakhstan’s flagship carrier, says a scarcity of jet fuel is threatening its operations as Russian rivals suck up supplies.  “Regular air service in Kazakhstan is in jeopardy,” Air Astana said on September 25 in a statement, citing lower fuel deliveries from Russia.

According to it, four suppliers — Gazprom Neft PJSC, Rosneft PJSC, Lukoil PJSC and Tatneft PJSC — have sent an average of 15,000 tons a month this year, down from 44,000 tons in 2016.

Russian airlines are booming as cheaper fuel and an economic recovery spur travel. Passenger volumes in August reportedly expanded more than 16 percent year-on-year and shares of Aeroflot PJSC rose to a record the previous month.  But increased demand for fuel has had a knock-on effect on neighboring Kazakhstan, which relies on Russia for about 70 percent of its jet fuel, Air Astana said.

“Scheduled repairs at Kazakhstan’s Shymkent refinery could worsen the “crisis,” the Kazakh air carrier said.

Gazprom Neft has given notice that fuel exports will not resume until next May, Air Astana said.  The Russian company said it hasn’t broken any contract.

Rosneft said it’s in “full compliance with its contractual obligations,” according to a statement from the company, while Lukoil said deliveries to Kazakhstan have been carried out “within bounds agreed by the energy ministries of both countries.”

In Tajikistan, the Open Joint-Stock Company (OJSC) Fuel Supply Company occupies a monopoly position on the country’s jet fuel market.

“Tajikistan buys jet fuel in the Russian Federation and we still have no any problems with purchase of jet fuel,” a source at Fuel Supply Company told Asia-Plus by phone.

In the second half of this year, Tajikistan has reduced jet fuel exports from 3,500 tons per month to 2,000 tons per month.  “We have reduced the jet fuel exports because Tajik air carriers cannot pay for jet fuel in full volume,” the source added.  

Meanwhile, planes of Tajik air carriers are continuing to land at airports of neighboring countries for refueling.   They have been forced to land at airports of neighboring countries for refueling since May this year.

In recent years, aviation fuel at Tajik airports has become the most expensive in the region.  Tajikistan’s privately owned air carrier, Somon Air, announced in early September that henceforth, it flights from Tajikistan will last one hour more because of forced refueling at airports of neighboring countries.  Similar situation has been reported at the Tajik national air carrier, Tajik Air, as well. 

The main reasons for forced refueling at airports of neighboring countries are high cost of aviation fuel in Tajikistan and shortage of it in the country.

A lack of fuel supplies to Tajikistan’s airlines is reportedly forcing the carriers to perform layovers at foreign terminals during long international flights.

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