Sponsor Message:
Civil Aviation Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Express Jet Fuel "cap" Costing CO $$$  
User currently offline9844 From United States of America, joined Nov 2001, 199 posts, RR: 0
Posted (11 years 5 months 2 weeks 16 hours ago) and read 3009 times:

Read it and weep.


Scroll down to operating expence. Seems CAL is footing a large bill. For Express Jets fuel purchases.

The increase in aircraft fuel expense and related taxes during the three months ended March 31, 2004 as compared to the same period in 2003was due to a 31.5% increase in fuel consumption as a result of higher block hours flown. Under the capacity purchase agreement and the related fuel purchase agreement with Continental, we incur a fuel price and fuel tax equal to the lower of the actual cost of fuel and fuel tax or the agreed-upon caps. Our caps on fuel and fuel tax are 66.0 cents and 5.2 cents per gallon, respectively, for both 2004 and 2003. Until the termination of the fuel purchase agreement, our future fuel expense related to all aircraft covered under the capacity purchase agreement will be the lower of the actual cost of fuel and fuel tax or 71.2 cents per gallon.

Do the math 2004 2003

Fuel gallons consumed (millions)........................................ 60.6 46.1 31.5 %

60 million gallons multiplied by {.71 - $1.34 Going rate on a gallon of Jet "A" = .63 cents} .63 x 60Mil Gal = $37,800,000 some odd million. CAL forked over to express jet. Granted this is by no means the whole story.But taken on its own very interesting.

Top Of Page
Forum Index

This topic is archived and can not be replied to any more.

Printer friendly format

Similar topics:More similar topics...
"Researchers Working On Alternative Jet Fuel"! posted Tue Jun 20 2006 06:41:22 by NWDC10
Express Jet (CO Express) Interviews Question? posted Thu Oct 26 2006 15:48:30 by CO767
Air Canada's Fuel-saving "measures" posted Thu Apr 20 2006 19:55:18 by Boeingfanyyz
CO "H" Class Fare Questions posted Tue Dec 6 2005 05:30:23 by Lincoln
Fired "makeup" Lady Still At CO? posted Wed Jul 27 2005 01:30:20 by 727LOVER
United Express' "G" Gates At IAD posted Thu Apr 14 2005 05:23:04 by IADCRJ
Jet Blue Buying "Y" Class Tickets On DL posted Fri Aug 13 2004 05:03:40 by DeltaAgent1
JetBlue "Fuel Stops" From LGB In July posted Mon May 24 2004 00:43:50 by DCAYOW
"The Jet Blue Experience" posted Mon Dec 1 2003 05:13:03 by SunValley
AMR To Buy Back Biz Jet Corp "Flex Jet"? posted Wed Nov 28 2001 02:10:47 by AA@DFW