(May 8): The European Union is set to clarify that the continent’s airlines are allowed to use a type of jet fuel more commonly consumed in the US to help them to cope with the loss of supply caused by the closure of the Strait of Hormuz. It will also confirm that ticket prices can’t be increased after sale.
Airlines 4 Europe, a trade association representing the likes of Deutsche Lufthansa AG, Air France-KLM and British Airways owner IAG SA, previously asked the EU to allow imports and use of Jet A-type fuel used predominantly in the US into the bloc, according to a document seen by Bloomberg. The norm in Europe is fuel type A1.
According to people familiar with the matter, the European Commission, the bloc’s executive arm, will clarify on Friday that there are no regulatory hurdles to doing so, although a change of fuel grade within a logistics system may require the agreement of users of that system. The people asked not to be identified because the information is not yet public.
The closure of Hormuz has blocked hundreds of millions of barrels of oil and fuels, and concerns in Europe have centred in particular on jet fuel, with summer holidays coming up. Jet A1 is by far the world’s most commonly used aviation fuel made from kerosene, whereas jet A is normally only available in the US.
The EU’s clarification may potentially encourage more shipments of jet fuel from the US into the region.
The bloc’s executive will also say that the price of a ticket that’s been sold cannot be increased retroactively, while reminding the industry of air passenger rights for all types of cancellations. The commission will also inform airlines that existing rules allow for flexibility over airport slots.
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“No jet fuel shortages have been reported across the EU,” the document says.
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