Europe's air sector faces 'systemic' fuel crisis
The head of the trade association representing Europe's airports has warned that the industry could be hit by fuel shortages within weeks unless the vital Strait of Hormuz shipping channel is reopened, easing strain on global fuel supplies.
Around 50 percent of Europe's aviation fuel comes from the Gulf region, as well as oil and gas supplies that are vital in supporting many other sectors, but the waterway is currently shut, despite the ceasefire following attacks on Iran by the United States and Israel.
Sultan Al Jaber, who is minister of industry and advanced technology in the United Arab Emirates, said Iran's retaliatory behavior in imposing conditions on passage through the strait "is not freedom of navigation".
On Sunday, US President Donald Trump said, the US Navy would immediately start blockading the strait too, and would interdict every vessel in international waters that had paid a toll to Iran.
Talks between the US and Iran that took place in Pakistan during the weekend failed to produce a breakthrough and the situation looks unlikely to improve, and Europe's economically-vital aviation sector is concerned about the consequences as it braces for the summer increase in air traffic.
Olivier Jankovec, who is director-general of Airports Council International Europe, has written to European commissioners in relevant sectors outlining his fears, and urging them to take action rather than rely on market forces to resolve the problem, as the price of what fuel is currently available continues to shoot up.
"A supply crunch would severely disrupt airport operations and air connectivity, with the risk of harsh economic impacts for the communities affected, and for Europe," he wrote. "At this stage, we understand that if the passage through the Strait of Hormuz does not resume in any significant and stable way within the next three weeks, systemic jet fuel shortage is set to become a reality for (the EU)."
The BBC reports that air travel supports 14 million jobs across Europe and is worth 851 billion euros ($997.8 billion) to the GDP of European countries. The current situation, Jankovec added, would place extra economic strain on smaller airports that were already struggling before the attacks on Iran began.
The EU Alive website says the particular challenge around aviation fuel, as opposed to other supplies that are also affected by the Hormuz situation, is that it is a very particular substance with fewer substitute alternatives than other energy demands, and even if the strait were to reopen soon, the journey by sea from Kuwait to the Netherlands port of Rotterdam takes up to six weeks, meaning a pinch point is inevitable.
In light of this, and the fact that prices of existing supplies are likely to remain high for some time, Jankovec said "this crisis should also be the opportunity to reinforce support for sustainable aviation fuel production and affordability".
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