MANILA, Philippines - PTT Philippines, the local subsidiary of Thailand’s largest oil company PTT Public Co. Ltd., has signed a jet fuel supply contract with budget airlines Cebu Pacific and Tigerair Philippines.
The agreement covers the Diosdado Macapagal International Airport (Clark) consumption only and will have a monthly average of 120,000 liters and 200,000 liters of fuel for the domestic flights requirements of Cebu Pacific and Tigerair, respectively, said PTT president and chief executive officer Wisarn Chawalitanon.
“These are just the initial demand for these two allied airline companies and we are projecting a demand growth for their Clark operations,” Chawalitanon said.
The agreement follows an earlier deal signed this year for an estimated volume of 183 million liters, valued at P8 billion. The term contract covers direct importations of Cebu Pacific for storage in Subic and eventual consumption for both its domestic, including the Visayas and Mindanao operations, and international flights at the Ninoy Aquino International Airport in Pasay, PTT said.
PTT currently supplies about 70 percent of Cebu Pacific’s jet fuel requirements for the airline’s domestic and international flights. The oil company has been supplying jet fuel to Cebu Pacific for almost 15 years.
The Thai oil firm expects contracts with Cebu Pacific to continue given the airline’s strategic alliance with Singapore’s largest budget airline Tigerair.
Cebu Pacific and Tigerair have entered into a strategic alliance this year to enhance their network coverage and jointly market inter-line routes.
Apart from Cebu Pacific, PTT also refuels other airlines using the Diosdado Macapagal Airport in Clark, Pampanga. Among these are Emirates, UPS, and Qatar Airlines.
PTT also maintains a refueling facility at the Subic International Airport with its fleet of six trucks.
PTT Philippines has a network of more than 70 retail stations, covering Metro Manila, Central, North and South Luzon, and Cebu in the Visayas.
It has also been expanding its retail business network through partnership with local investors.