A Sign Of Things To Come In The Lower 48?

by ANN Contributor Rob Stapleton, Alaska Journal of Commerce

Aviation fuel prices have jumped dramatically in Alaska, and it is no surprise that it's going to raise the cost of flying. In fact, it may be curtailing flying.

The fuel price for jet fuel at Ted Stevens Anchorage International Airport are some of the highest in the U.S.

"This is going to change the landscape of who is flying, and who is not," said Tim LaPorte of Iliamna Air Service. LaPorte operates out of Signature Flight Support on the East ramp at Anchorage International.

LaPorte was astonished when he got a fax from Signature Flight Support, his landlord at Ted Stevens Anchorage International Airport.

"The prices have almost doubled from earlier this year," he said.

Signature's fuel price update according to another carrier has risen from the low $3.00 a gallon for Jet-A fuel, to a high of $5.54 as of April 18.

Jet A with Prist -- a water inhibitor for fuel -- is $5.60, and 100LL is now $4.74 a gallon. Great Circle Flight Services, LLC -- just up the ramp from Signature -- is selling avgas for $4.49 a gallon.

Signature, who initially refused to comment for this story, stated "We get 10 calls a day about the price of fuel, I don't see any upside to be featured or quoted in your story," said Dave Hall, general manager of Signature Flight Support at TSAIA.

Hall was speaking at the instruction of his superiors in Florida.

"I have been instructed to say the same thing, I can't comment on any prices or anything," said Hall.

The big question is what will happen to the prices of flights in Bush Alaska.

"When avgas gets to $6.00 a gallon you aren't going to see many general aviation pilots flying their planes, just for fun," said Will Johnson director of operations at Yuut Yuqungviat Flight School in Bethel.

"The prices are out of this world," said Dee Hanson, executive director of the Alaska Airmen's Association.

In a comparison of prices around the state, avgas varies considerably.

In Naknek the price of aviation gasoline, 100 octane low lead fuel is $2.83 a gallon; in Unalakleet on the Bering Sea, 100LL is $4.98 a gallon. This price is only three cents higher than Signature's price for the same fuel in Long Beach, CA.

The price of 100LL in McGrath is $4.10 a gallon, and in Galena it is $4.63 a gallon. North Slope fuel prices are just as variable with AvGas 110 LL ranging from $3.80 a gallon from Cape Smythe in Barrow, to $4.02 at Deadhorse Airport in Prudhoe Bay, and $5.25 a gallon at Umiat.

Why the difference? Dick Armstrong the owner of ACE Fuel, LLC says "it depends on when they bought their fuel."

"For instance in Homer they get fuel barged once a year, so their fuel is lower, because they paid less," said Armstrong. "We get fuel every Tuesday and we are seeing the price rise from 12-20 cents a gallon weekly." AvGas in Homer was $3.93 a gallon on April 27.

ACE Fuels, LLC has avgas sales at Fairbanks International and the float pond, Merrill Field, and on the Merrill Field gravel strip, Lake Hood gravel strip and on Lake Hood, and at the Willow Airport.

"The prices are too damn high," Armstrong said. He also added that he has seen a decline in usage by his customers, and that every person has their own personal threshold at how much they will pay.

"It is clear to me by the numbers, we are not seeing as many planes flying now as we did this time last year, "Armstrong said.

FMI: Check Avgas Prices In Your Area