Airports in the Supply Chain

What Does the Future Hold?

Presentation by Col Fraser to

2004 MEJET Conference

Bahrain

11th May, 2004

Aviation Fuel Associates (Australia) Pty Ltd

PRESENTATION OBJECTIVES

• To provide an insight into the aviation industry fuelling and associated services - globally and regionally.

• To identify trends, areas of change, opportunity and threat.

AirportsSuppliers

Aircraft Operators

Airlines Airports/Suppliers Oil Companies

BAAASIGHoctief

StarOne WorldWingsSkyteam

Air ChinaAir AfriqueVietnam AirGaruda

ExxonMobil Shell Air BPChevron/TexacoTotal/Elf/Fina ?

ADNOC KPC KAFCOSaudi AramcoRepsol SPC

SkytankingBAPCOSwissportGlobegroundFluid Transfer

The House of Aviation

Into Plane Fuelling

Airport Storage & Hydrant

Distribution

Intermediate Storage

Supply

Refining Supply Intermediate Storage

DistributionAirport

Storage & Hydrant

Into Plane Fuelling

ROW

USA

TREND

OPEN ACCESS

CLOSED ACCESS

USA vs ROW Aviation Structure

Airport Fuel – Structures and Stakeholders

• Solus or Joint Ventures

• Joint Ventures

Partners - Oil, Airlines, Airports, IP’s, Other

Structures

Operational issues

• Opportunities and Threats - opening up

Airport Fuel – Influencing Factors

• Privatisation

• Globalisation

• Airline Profitability

• Low/No Frills Airlines

• Changing Traditional Structures

• Airport Capacity and Capability

• Environmental Considerations

• Quality, Safety and Security Aspects

The Future

• Continuing strong growth - long term

• Global with strong regional focus - Asian impact

• Technologically Driven

• Commodity Based Attitudes

• Fewer larger players

• Growing Environmental, Safety & Security Focus

• Increasing Privatisation and Open Access

Opportunities, Threats & Conclusions • Ongoing strong global growth in products and services

• Traditional Oil Industry structures vulnerable

• Airlines driving change

• Existing JV framework becoming difficult

• Transparency will drive cost management

• Airports are an emerging force

• EU and global legislation

• HS&E requirements increasingly important

• Public awareness a factor

Rec

omm

end

atio

ns

• Be Alert, Knowledgeable and Aware

• Know the Costs

• Have Good Leadership

• Take the Initiative

• EXPECT THE UNEXPECTED