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Ogle Airport, Air Services Ltd conclude fuel handling agreement

Oct 31, 2013 News

 

 

After months of bitter wrangling, the way is now clear for Air Services Limited (ASL) to operate its multi- million-dollar fuel farm at the Ogle International Airport.
This was after a mutual agreement was reached between Ogle Airport Inc. (OAI) and ASL for the local aviation company to be licensed as a Commercial Fuel Handling Agent at Ogle Airport and to start operating its Fuel Farm at the Airport under terms and conditions no less favourable than its competitor Caribbean Aviation   Management Services Limited (CAMSL).
This development comes after an emergency meeting convened by the Minister of Public Works and Communication, Robeson Benn, to iron out some issues that prevented ASL from operating its US$1M fuel farm.
The company had accused the Ogle Airport Inc. of frustrating its efforts to operate its fuel farm in order to maintain a monopoly on fuel distribution at the airport through CAMS.
However, OAI responded by pointing out that ASL had not satisfied the requirements to operate the fuel farm.
The fallout between the two sides started a few years ago when ASL and the Ogle Airport management were locked in a bitter dispute over the supply of fuel after CAMS objected to ASL tankers bringing fuel into the airport to supply its large fleet of aircraft.
CAMS is owned and operated by the Correia Group of Companies, a competitor, which had held the monopoly on the supply of fuel to all airlines operating from the Ogle Airport.
But the fallout led to ASL building its own fuel farm which remained inoperable for more than a year due to what was described as OAI’s “shifting of the goal posts” with regards to the requirements for operating the fuel farm, to delay its functioning.
This claim was flatly denied by OAI.
ASL subsequently refused to purchase fuel from CAMS and later entered into an arrangement with another major fuel supplier, RUBIS, to supply its aircraft at Ogle.
This arrangement went on smoothly until last month when RUBIS had a problem with the comingling of its fuel and temporarily halted supply to Ogle.
This led to back and forth accusation by both sides with ASL announcing that it faced a possible shut down of its operations, while Ogle Airport Inc. responded by claiming that ASL was making a mountain out of a mole hill.
The bickering prompted Minister Benn to convene the meeting that later led to this new mutual agreement.

 

 

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