Business dries up at Anchorage airport, along with jet fuel

INTERNATIONAL air cargo carriers, up to 25 airlines, have been avoiding refuelling at Anchorage airport because of a lack of jet fuel.

In a bid to resolve this issue, Flint Hills Resources has restarted a third crude oil processing unit at the company's North Pole refinery to make additional jet fuel, and Anchorage airport manager John Parrott is now avidly trying to lure the overflying airlines back, reports the Alaska Journal of Commerce.

Flint Hills shut down its processing unit last year when air cargo traffic through Anchorage dropped sharply in response to the recession.

Flint Hills spokesman Jeff Cook said the refinery would operate its third unit throughout the summer and autumn as long as there is demand for the fuel and the company can make money from sales.

State officials were cited as saying that Flint Hills plans to close the unit in October to avoid the costs of shutting down during extreme cold weather.

However, October until December is typically a peak period for international air cargo carriers moving goods from Asia to the US for the holiday season.

To offset lost landing fees, Anchorage would have to raise fees for other carriers to cover fixed operating costs, if the overflying trend were to continue.

Air carriers landing in Anchorage typically purchase about 800 million gallons of jet fuel a year, according to state officials, the report added.
(Source:www.schednet.com)