BUDGET airlines Cebu Pacific and Tigerair Philippines will source their jet-fuel requirements from PTT Philippines, the local subsidiary of Thailand’s PTT Public Co. Ltd.
In a contract signing, the fuel the two airlines will source from PTT for a year will be utilized for their domestic flights, exclusively for their Diosdado Macapagal International Airport (Clark) consumption only.
The agreement covers a monthly average of 120,000 liters and 200,000 liters of fuel of Cebu Pacific and Tigerair, respectively. The contracts are worth P170 million.
“These are just the initial demand for these two allied airline companies, and we are projecting a demand growth for their Clark operations,” said PTT President and CEO Wisarn Chawalitanon who led the signing for the Thai oil firm with Cebu Air Inc. Vice President for Cargo and Fuel Management Joseph Macagga. Early this year, PTT and Cebu Air also signed a jet-fuel supply agreement for an estimated volume of 183 million liters with a sales value of P8 billion. The term-deal contract covers direct importations of Cebu Air for storage in Subic and eventual consumption for both its 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 Singapore’s largest budget airline Tigerair.
The two entered into a strategic alliance this year to enhance their network coverage and jointly market interline routes. Apart from Cebu Pacific, PTT also refuels other airlines using the Diosdado Macapagal Airport in Clark, Pampanga.
Among these are Emirates, UPS, Qatar and other ad hoc flights. PTT also maintains a refueling facility in Subic International Airport with its fleet of six refueler trucks.
PTT Philippines has been expanding also its retail-business network through partnership with local investors. Currently, PTT Philippines has more than 70 retail stations all over Metro Manila; Central, North and South Luzon; and Cebu in the Visayas.