European airlines say jet fuel prices are fixed
European airlines on Monday called on EU regulators to investigate what they say are unfair monopolies in the jet fuel market.
Oil companies are raising the price of refined jet fuel faster than the increase in crude oil prices, said the Association of European Airlines, which represents 31 European airlines. “The industry is suffering already from today’s exceptionally high fuel costs.
The last thing we need is for those costs to be further inflated by unfair commercial practices,” said AEA Secretary General Ulrich Schulte-Strathaus.
Jet fuel costs increased 37 percent from last year, and airlines are spending up to a quarter of their operating costs on jet fuel, the AEA said in a statement.
Earlier this month, Austrian Airlines asked both the Austrian and EU authorities to examine what it maintains are monopolistic practices of state-owned Austrian oil and gas company, OMV. Austrian Airlines estimates that it has spent an extra euro35 million (US$45 million) a year as a result of OMV’s price hikes.
The airline reported a loss of euro59.9 million (US$77 million) for the first half of 2006. OMV denies any allegations that it is fixing jet fuel prices.
In June, Italian competition authorities fined six major oil companies a total of euro315.4 million (US$403 million) for exchanging information and illegally raising the price of jet fuel.
European Commission antitrust authorities said they needed more time before commenting.