Aviation fuel supply crisis in Colombia: ALTA and LATAM call for government solutions

LATA Colombia Airbus A320 CC-BAS Combustible

LATAM Airlines Colombia and the LATAM Group subsidiaries operating in the country have been notified about the depletion of Jet A1 aviation fuel inventories at the airports of Leticia, Montería, and Bucaramanga, while levels in Bogotá have dropped to a critical point. This situation has arisen due to a power failure at the Cartagena Refinery on August 16, which has triggered a fuel supply crisis across Colombia.

Since the beginning of the week, LATAM Airlines has implemented a contingency plan to manage fuel consumption and ensure the fulfillment of its schedules. These measures include loading additional fuel on international flights departing from Colombia, adjusting operational processes, and closely monitoring fuel consumption at each airport in the country.

Additionally, the aviation industry, through IATA, is collaborating with Aerocivil, the Superintendency of Transport, the Ministry of Mines and Energy, and Ecopetrol to monitor the situation and define actions to mitigate the crisis until the imported fuel arrives. Ecopetrol has imported 100,000 barrels of Jet A1, which are expected to arrive between August 31 and September 2.

On August 21, Ecopetrol reported that the power failure at the Cartagena Refinery would result in an 8% deficit in Jet A1 deliveries across the country. However, recent projections have reduced this deficit to 5%.

Ensuring the aviation fuel supply in the country is critical for the stability of air operations in Colombia. It is essential to evaluate structural measures that offer better tools to address contingencies like this, where our passengers would be the most affected,” stated Santiago Álvarez, CEO of LATAM Airlines Colombia.

ALTA Calls for the Issue to be Treated as a “Matter of State”

The Latin American and Caribbean Air Transport Association (ALTA) has emphasized the urgency of addressing the Jet A1 aviation fuel supply crisis in Colombia as a matter of state. This organization, which represents 170 companies within the civil aviation ecosystem in the region, including airlines responsible for more than 80% of air traffic in Latin America and the Caribbean, warns about the potential impact of the situation on the country’s connectivity and economy.

In light of the power failure at the Cartagena Refinery on August 16, which has necessitated fuel imports, ALTA underscores the importance of maintaining a reliable fuel supply, vital for the more than 52 flights that take off and land every hour in Colombia. This operational pace, dependent on a daily consumption of over one million gallons of fuel, is crucial for the connectivity that enables the arrival of 4 million tourists and the transportation of 120,000 passengers daily through more than 20 commercial airports in the country.

ALTA highlights two critical aspects to address the current crisis and maintain the viability of air transport in Colombia:

1. Transparency in fuel planning and distribution: It is crucial to ensure clarity in the capacity planning mechanisms relative to demand and in the management of fuel inventories. This will prevent an excessive impact on airline operating costs, which already allocate 35% of their expenses to fuel. Poor planning could increase ticket prices, harming consumers.

2. Regulation for the importation of JET A fuel: ALTA calls for the publication of regulations that would allow the importation of JET A fuel from nearby markets. This could open up competition, reduce costs, and improve availability, benefiting the entire industry and, ultimately, passengers.

ALTA also stresses the need to ensure an equitable fuel supply for all operators, whether through direct distributors or brokers, and to share inventory information to avoid shortages. The association emphasizes that, given the current risk, cooperation among suppliers is essential.

In its appeal to authorities, ALTA urges prioritizing dialogue with operators and stakeholders to develop solutions that minimize the impact on Colombians and air transport users. “The aviation industry in Colombia is essential,” ALTA asserts, reminding that tourism contributes 5% of the national GDP and that air transport is a fundamental public service.

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