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Author Topic: Fuel Supplier Contracts  (Read 1911 times)

Offline Sir William Claud Townson

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Fuel Supplier Contracts
« on: January 24, 2018, 10:16:19 PM »
I'm sure I am putting in the wrong search terms to answer this or something so I apologise if this has been asked a million times.

I signed a fuel supply contract for a *fixed* monthly fee of $76,400. Yet somehow the cost varies week to week (*variable*) and now I am paying between $140,000 and $180,000 a month (double?!). What did I miss?

Is it maybe adding the fee from my hedging contract to the fuel contract section? Still doesn't seem to add up.

Offline JumboShrimp

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Re: Fuel Supplier Contracts
« Reply #1 on: January 24, 2018, 11:31:20 PM »
Fuel contract IS fixed per month (with minor changes from week to week depending if the month has 28, 29, 30 or 31 days)

If you see large, variable charges, those are probably from the hedge.

Offline Pedro León

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Re: Fuel Supplier Contracts
« Reply #2 on: April 02, 2018, 07:45:49 PM »
What's the point on this? Why/when should you do this contract? Depending on the contract, but if you get ie -6% off the daily fuel price, but pay let's say $400 000 - $500 000 fee, isn't it more or less +-0?

Offline Cedric3108

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Re: Fuel Supplier Contracts
« Reply #3 on: April 02, 2018, 10:32:35 PM »
Well, my 100 airplane airline has a WEEKLY fuel bill of around 10 000 000$, so 5% of that are 500 000$; the MONTHLY fuel contract fee is 350 000$, around 80 000$ a week.
So the fuel contract saves my airline around 400 000$ a week.
Don't mix up weekly and monthly based numbers here  ;)

Of course it's a factor of airline size. A 10 airplane airline isn't going to benefit, the bigger you get the more such a contract saves you.

Hope this clears things up,
greets,
Cedric

Offline APTamas

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Offline TheGrew

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Re: Fuel Supplier Contracts
« Reply #5 on: June 17, 2018, 09:12:14 AM »
The other thing I would say is that if you anticipate growing your airline it is often worth signing a contract as I have found the terms to be based on the size of your airline currently. I then find when I have to renew that I pay a lot more for an equivalent contract.

Online elmarinomercante

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Re: Fuel Supplier Contracts
« Reply #6 on: July 02, 2018, 09:55:53 AM »
Hello.

Please, another question. Is there any way to know how much money have I saved each month?
Thanks

Offline APTamas

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Re: Fuel Supplier Contracts
« Reply #7 on: July 02, 2018, 12:44:28 PM »
You can check costs you spent on fuel at income statement then you can calculate how much you saved  ;)

Offline knobbygb

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Re: Fuel Supplier Contracts
« Reply #8 on: November 26, 2018, 09:06:17 AM »
The other thing I would say is that if you anticipate growing your airline it is often worth signing a contract as I have found the terms to be based on the size of your airline currently. I then find when I have to renew that I pay a lot more for an equivalent contract.
I agree. The first thing I do when I start a game or open a new base is to take out a fuel contract.  Even if doesn't seem too favourable, I nearly always save a LOT of money.

Quote
Well, my 100 airplane airline has a WEEKLY fuel bill of around 10 000 000$, so 5% of that are 500 000$; the MONTHLY fuel contract fee is 350 000$, around 80 000$ a week.
So the fuel contract saves my airline around 400 000$ a week.

Don't forget that your fuel contract only saves you money on fuel that you buy at your home base, i.e. HALF of your total fuel burn. So in your case you are saving only 170 000$ per week.

 

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