Tankering

Tankering is a term primarily used in the aviation industry to describe the practice of carrying excess fuel on an aircraft to avoid purchasing fuel at a more expensive location. It is a fuel management strategy employed by airlines and other aircraft operators to reduce overall fuel costs.

Description

The core concept of tankering involves fueling an aircraft with more fuel than is strictly necessary for a specific flight segment. This excess fuel, known as "tankered fuel," is then used on subsequent flight segments, avoiding the need to refuel at airports where fuel prices are higher. The economic benefit arises from the price differential between fuel at the origin airport and the destination or subsequent airports.

Factors Influencing Tankering Decisions

Several factors influence the decision to tanker fuel, including:

• Fuel Price Discrepancies: The primary driver is the difference in fuel prices between airports. Significant price variations make tankering more attractive.
• Aircraft Performance: The amount of fuel that can be tankered is limited by the aircraft's maximum takeoff weight (MTOW) and landing weight (MLW). Tankering adds weight, which can impact fuel burn and potentially reduce payload capacity (passengers or cargo).
• Fuel Burn Rate: The type of aircraft and flight profile affect fuel consumption. Tankering must account for the additional fuel burned due to the increased weight from the tankered fuel itself.
• Operational Considerations: Flight schedules, airport restrictions, and potential for delays also influence tankering decisions. Carrying extra fuel can add complexity to flight planning and operations.
• Regulatory Compliance: Airlines must adhere to safety regulations regarding fuel reserves and weight limitations.

Advantages

• Cost Savings: The primary advantage is the potential reduction in overall fuel costs.
• Supply Chain Management: Tankering can provide a degree of insulation from local fuel supply disruptions or price volatility at specific airports.

Disadvantages

• Increased Fuel Burn: Carrying extra weight increases fuel consumption, offsetting some of the cost savings.
• Reduced Payload Capacity: Tankering can limit the amount of passengers or cargo that can be carried.
• Operational Complexity: It adds complexity to flight planning, potentially impacting flight times and route selection.
• Environmental Impact: Increased fuel burn results in higher carbon emissions.

Regulation

The practice of tankering is generally permissible as long as it complies with aviation safety regulations, weight limitations, and operational procedures. Authorities like the Federal Aviation Administration (FAA) and the European Aviation Safety Agency (EASA) provide guidelines and oversight.

Alternatives

Alternatives to tankering include:

• Fuel Hedging: Agreements to purchase fuel at a fixed price in the future, mitigating the risk of price fluctuations.
• Negotiated Fuel Contracts: Agreements with fuel suppliers to secure favorable fuel prices.
• Route Optimization: Adjusting flight routes to minimize fuel consumption.