PTT signs fuel deal with Cebu Pacific, Tigerair


PTT Philippines, the local subsidiary of Thailand’s largest oil company PTT Public Company Limited, has signed a jet fuel supply contract with budget airlines Cebu Pacific and Tigerair Philippines.

Danilo Alabado, general manager for PTT Philippines Trading Corp., said the one-year supply agreement entails 4 million liters of jet fuel worth P170 million.

The deal covers a monthly average of 120,000 liters of fuel for the domestic flights requirements of Cebu Pacific and and 200,000 liters for Tigerair, exclusively for their Diosdado Macapagal International Airport (Clark) consumption only.

Joseph Macagga, Cebu Air, Inc.’s vice president for Cargo and Fuel Management, said the airline may introduce more flights from Clark to Bangkok, while Tigerair may proceed with flights from Clark to Singapore.

“But (the plan) is still up for discussion whether Cebu Pacific will fly the route daily or on a weekly basis,” Macagga told reporters after the signing of the agreement in Quezon City Wednesday night.

PTT President and Chief Executive Officer Wisarn Chawalitanon said that the company is projecting a demand growth in the Clark operations of both Cebu Pacific and Tigerair.

“These are just the initial demand for these two allied airline companies and we are projecting a demand growth for their Clark operations,” Chawalitanon said.

Early this year, PTT and Cebu Air also signed a jet fuel supply agreement for an estimated volume of 183 million liters worth P8 billion.

The contract covers direct jet fuel importations for Cebu Air, which will be stored in Subic for the airline’s domestic —including the Visayas and Mindanao
operations—and international flights at the Ninoy Aquino International Airport.

Currently, PTT supplies about 70 percent of Cebu Air’s jet fuel requirements for both its domestic and international flights.  PTT has been supplying jet fuel to Cebu Air for almost 15 years already.

PTT projects a supply growth for airlines following Cebu Pacific’s strategic alliance with Tigerair, Singapore’s largest budget airline.

The two entered into a strategic alliance this year to enhance their network coverage and to jointly market interline routes.
Besides Cebu Pacific, PTT also refuels other airlines using the Diosdado Macapagal Airport in Clark, Pampanga.  These carriers include Emirates, UPS, Qatar, and other ad hoc flights.

PTT also maintains a refueling facility at the Subic International Airport with its fleet of six refueler trucks.


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