(EnergyAsia, March 21 2013, Thursday) — China Aviation Oil (Singapore) Corporation Ltd (CAO), Asia’s largest physical jet fuel trader, said it has secured 18-month contracts to supply a total of 120,000 metric tons of aviation fuel to Air China planes at international airports in London, Madrid and Los Angeles starting April 1.
CAO said it will be the supplier at Spain’s Madrid International Airport, while subsidiaries, North American Fuel Corporation (NAFCO) and China Aviation Oil (Hong Kong) Company Limited (CAOHK), will supply at Los Angeles International Airport in the US and London Heathrow Airport in UK, respectively.
“The award of these contracts marks another significant progress in the group’s proactive approach towards expanding its aviation fuel marketing business,” Singapore-listed CAO said.
Madrid is a new supply location for the company while it will be the first time it will fuel Air China planes at Los Angeles. The London contract is an extension of an existing agreement.
CAO currently supplies aviation fuel to Air China, China Southern and China Eastern, the country’s three major airlines.
The company has marked aviation fuel marketing and trading as part of its 2020 corporate strategy.
Last year, its parent company, China National Aviation Fuel Group Corporation (CNAF), established strategic alliances with major Chinese airlines that made CAO their preferred supplier of aviation fuel in airports outside China.
CAO said its aviation fuel marketing volume surged 36 times to 750,000 tonnes last year since its launch in 2011.
CEO Meng Fanqiu said: “The award of aviation fuel contracts by Air China at three key international aviation hubs is a milestone in the group’s efforts and commitment towards growing and expanding our aviation fuel marketing business.
“As the overseas aviation supply arm of CNAF, we are able to leverage on CNAF’s strategic alliances with major Chinese airlines as well as its business network and connections to further grow our businesses beyond China.”