Bulk Fuel

[WBHoenig]

Whilst flying up here at FL400 from KAUS to LFPG, I thought of an FsP suggestion. I was thinking about how much fuel would cost me for my 747. Some
real world airlines buy fuel in bulk at lower prices and then use it later to save money. For instance, it would be cheaper for British Airways to
stock up on fuel in Behruit (sp?) than at Heathrow. It'd be cool in my opinion if that could be put into FsP. You could by cheaper fuel at a cheaper
time and place, store it, and use it in a few months. Also, if fuel was starting to go up, you could buy it as an investment and sell it later, like
the stock market (or loose money, like the stock market).

[SWAFO]

What SWA did that was a smart move was secure a contract with the fuel company to get fuel for "X" period of time at the current price
back then. This is why we're the largest domestic carrier with a profit!

As far as I know, fuel prices don't really go down when purchased in bulk. I'm no lawyer, but I believe it's illegal for companies to
artificially inflate fuel prices. I know there's some law about all this.

[WBHoenig]

1) I agree.

2) I mean store up on fuel from locations where it's cheaper (e.g. Dallas must be cheaper than London). And yes, there is a law against inflation of
oil, but it hasn't been enforced since Jan. 2001.

[Dutch64]

And it make it something like "Oil Tycoon"? I think this has been discussed before too btw....

[WBHoenig]

Oil Tycoon or George Bush Tycoon

[SWAFO]

Let's not get political now!

[WBHoenig]

Why Not?



I like bashing bush!

[bdlong]

I'm not sure how it could be implenmented, but to take from your idea:

Airports have different prices. Is is cheaper for you to fly 500 miles and refuel before the return trip, or before continueing on for your next leg,
or is it cheaper for you to fuel up at your original destination so that you have enough fuel for the complete trip?

[SWAFO]

Since prices don't vary THAT MUCH, carrying all that extra weight wouldn't be too economical (if flying a 737, or smaller aircraft). It really
depends on the price variation, conditions enroute, etc. This determines what we do with fuel at the initiation of a trip.

[WBHoenig]

That's true

I guess I'm going by gas prices (all the same oil, isn't it?); It is $2.10/gallon here in Austin while about $6/gallon in Europe.

[SWAFO]

I don't know about the rules on international oil transferring/storing. I only fly domestically, so couldn't advise on the outrageously priced
European oil!

[Nasder]

There's nothing wrong with our gas prices!

We only pay around 1 dollar for 1 litre (please note the sarcasm)

Glad I don't own a car, I drive my dad's car



Post Edited ( 12-29-05 10:25 )

[WBHoenig]

$1/liter. 1 liter ~ 1/4 gallon. Multiply 1*4. That's $4/gallon.

[Nasder]

WBHoenig wrote:
$1/liter. 1 liter ~ 1/4 gallon. Multiply 1*4. That's $4/gallon.

my bad, the dollar is old... heh, let me recheck

1USD = 7.8 SEK (rougly)

Gasprice is around 10-11SEK/litre (haven't filled the car in quite a long while, so I don't know the price)

And redo the math now

[WBHoenig]

Okay. 1/7.8 ~ 0.13. ). 0.13*10 = $1.30/liter. $1.30*4 = $5.20

So gas is rougly $5.20/gallon.