Source: Reuters Author: Emma Farge 11/17/2009
Subject Concerned: Airlines Aviation Fuel
Air France-KLM said on Nov. 17 that it was considering switching to Argus from Platts pricing for its term jet fuel purchases from next year.
"We are considering a switch. We will take a final decision on whether this will be in December and this would affect the global operations of Air France-KLM," Robert Bijl, a senior fuel manager at the airline, told Reuters.
He said the decision would affect its jet fuel term purchases for 2010.
Argus and Platts compete to set price benchmarks in the oil and oil product markets. Even small discrepancies in benchmarks can have serious implications for firms' fuel spending.
Jet fuel prices are composed of the benchmark gas oil contract traded on ICE plus a premium.
The news follows Saudi Arabia state oil company Aramco's decision last month to move to the Argus sour crude index as the benchmark grade for all crude grades sold to the United States.