74
75
Latvia -
Lithuania -
Luxembourg Luxembourg (FBG, 2016)
Malta -
Netherlands Amsterdam (FBG, 2016)
Poland -
Portugal Lissabon (project) (Reuters, 2009)
Romania -
Slovakia -
Slovenia -
Spain Alicante, Cordoba, Madrid, Barcelona (CLH, 2017b)
Sweden -
United Kingdom London Heathrow, Gatwick (CLH, 2017a)
76
Appendix B: Interview Transcripts
Interview 1:
Line Paraphrase Generalization Category Coding
Question 1
1-5
jet fuel price is definitely a critical issue for the future, crude oil price has been fluctuating in the past
jet fuel price volatility is
a critical issue C1 jet fuel price volatility
7-12
about 25% of the overall budget is jet fuel costs, higher for low cost airlines because of lower personnel costs, no matter where or which business model you have, the jet fuel price affects the profitability and cost structure of an airline
jet fuel price is a high proportion of the cost
structure C1 cost structure part
12-19
jet fuel price is derived by crude, used as basis product then refined, as refinery and oil companies try to increase profits, they do not maximize the amount of jet produced but reduce kerosene production and increase diesel
dependent on strategy decisions of refineries and oil companies to
produce jet fuel C4 production of jet fuel
19-28
long time with prices over USD 100 then lowered, a difference of USD 20 in Brent means an increase of 1.2 billon (USD), potentially affects total profit, price volatility is therefore a critical issue
jet fuel price volatility is
a critical issue C1 jet fuel price volatility
32-37
CO2 Emission costs have an effect but are not highly relevant, but CO2 programme is important
CO2 emissions are considered but not cost
relevant C6
jet fuel and its environmental impact
39-47
low jet fuel prices gives the possibility to keep old aircrafts for a longer time, add to competition, which otherwise might not be participating or not with old aircrafts, in charter and air freight written-off aircrafts are used despite fuel efficiency
high jet fuel price increases investment in fuel efficiency, low jet fuel price increases competition by using old
aircrafts C6
impact of price on jet fuel efficiency
47-55
airlines investing in fuel efficient aircrafts see the fuel price as a factor, higher jet fuel prices might reduce competitors, however, European customers are used to low prices due to low fuel prices, fundamental issue which pressures the margin
high jet fuel price increases investment in fuel efficiency, low jet fuel price increases competition by using old
aircrafts C6
impact of price on jet fuel efficiency
59-65
competitors which only enter the market due to low jet fuel prices, low jet fuel prices lead to more competition
low jet fuel price increases competition by using old aircrafts C1
impact on competitiveness
69-74
jet fuel prices are not completely transfered to the customer due to competition and volatility
jet fuel volatility is critical issue, market
pressure C1 jet fuel price volatility
77
Line Paraphrase Generalization Category Coding
Question 2
79-83
jet fuel price is not necessarily the most important factor for the future regarding jet fuel but the infrastructure
infrastructure more
important than price C5
importance of infrastructure
83-89
quality of the jet fuel is important factor for the future, material
requirements, temperature stability jet fuel quality assurance C4 jet fuel quality
89-97
second important factor is
availability, on time and in long-term, third factor is price
availability as important
factor C5
importance of infrastructure
98-105
goal for the future is to secure the availability of jet fuel, massive changes regarding refineries, new product sources
dependent on strategy decisions of refineries and oil companies to
produce jet fuel C4
market situation refineries
105-109
to avoid too high volatility over a longer period of time, risk management with a layer method is
used Hedging to reduce risk C7 hedging to reduce risk
109-112
desirable outcome, secure availability and infrastructure in Europe
secure availability and
infrastructure C5
importance of infrastructure
115-121
make sure, jet fuel has a constantly good quality, varies in different locations, to assure quality, investigators check quality
continuously jet fuel quality assurance C4 jet fuel quality
122-126
change in refineries, a supplier might be tempted to switch focus from jet fuel to diesel as the margin is better
dependent on strategy decisions of refineries and oil companies to
produce jet fuel C4
market situation refineries
129-137
experiment between two cities to test the technical possibility whether bio fuel can be fully used as fuel, one with solely bio jet and one with regular jet, no focus on price or supply chain, bio jet is possible
bio jet fuel development
for the future C2 technical availability
137-145
The availability of bio fuel is too small, cannot be used fully commercially, industry does only cover minorly the amount so far, as supply is missing, not applicable commercially
low supply of bio jet fuel,
unfeasible C2 commercialization
147-151
Bio fuel is connected with
Sustainability, technology and future capabilities, willingness to adapt to bio fuel
bio jet fuel development
for the future C2
future development of bio fuel
78
Line Paraphrase Generalization Category Coding
Question 3
155-163
artificial restricted supply would be bad for the future, to increase prices artificially, leading to a higher tendering and increases costs, low availability of refineries in Europe will lead to ordering in bulk and the need for big storage facilities
artificial restricted supply
harms C1 artificial restriction
163-178
the negative development has started because refineries disappeared over the last 20-30 years, old infrastructure systems lead to difficulties to get jet to the aircraft, especially in the UK, too little investment in fuel infrastructure and supply chainshows the need for minimum storage capacity to assure 3-4 days minimum to secure regular business
activities closure of refineries C4
market situation refineries
178-189
when fuel is not available like during the incident in London in 2005, it causes issues leading to supply all airlines, long-haul was prioritized, leads to more costs and more complicated processes to ensure a working
infrastructure insecure infrastructure C5
importance of infrastructure
189-193
airport supply is not on an up-to-date standard to satisfy passenger and demand
growth insecure infrastructure C5
importance of infrastructure
196-209
fuel supply is best via pipeline, no interference, via train, reliable and environmental friendly, via ship, not possible to deliver directly to the airport, via truck, worst option, traffic jams near the
airport and too little capacity securing fuel for airports C5
ways of supply infrastructure
211-220
the supply on the airport are on a €40m-50m level, investments into infrastructure are costly to fulfil all regulations, the additional cost might lead to a competitive
disadvantage for the airport securing fuel for airports C5
importance of infrastructure
221-236
Example airport Munich, invested heavily which lead to high costs for airlines to fuel at the location, long-haul flights fuel there because it is unavoidable, investment into the infrastructure turned out to be negatively
for the location due to 25% more costs securing fuel for airports C5
importance of infrastructure
238-245
average profit per passenger worldwide in IATA airlines of USD 7-8, therefore only little margin of profit and jet fuel affects it highly
jet fuel price is a high proportion of the cost
structure C1 cost structure part
79
Line Paraphrase Generalization Category Coding
Question 4 251-255
strict pricing policy to hedge, while
American Airlines do not hedge at all Hedging to reduce risk C7 hedging strategy
255-265
Delta Airlines has bought a refinery to secure fuel availability and price, different industry and too much risk involved, not only jet fuel as end product, did not buy refinery because of the riskiness and wrong area of
expertise unsecure infrastructure C4
market situation refineries
265-275
no intention to buy reseller product or imports, direct sourcing from refineries to reduce risk and possible
financial damage reseller as supplier C5 reseller as supplier
Question 5
281-287
shareholder in essential
infrastructures on the airport, fuel storage, strategic advantage to know the cost structure of jet fuel and
involved investments securing fuel for airports C5
importance of infrastructure
288-301
being a shareholder of the infrastructures around secures cost stability, oil companies are seen as supplier which cannot be further cost
reduced securing fuel for airports C5
importance of infrastructure
301-306
different positioning compared to competitors, as the focus is on the delivery infrastructure rather than the
product securing fuel for airports C5
importance of infrastructure
80
Line Paraphrase Generalization Category Coding
Question 6
312-322
forecast for 2017 has been changed, price increase for jet fuel is expected,
€400m more to be spent on jet show clear effect on books, unclear whether the money will be earned by increased ticket prices or freight transport
expected jet fuel price
increase C1 jet fuel price volatility
322-327
pricing policy used to reduce volatility,
up to 2 years in advance hedging Hedging to reduce risk C7 hedging strategy
334-339
price increase due to OPEC decisions and the reduced investments in oil extraction
OPEC decision and reduced refinery
investments C3, C4
OPEC, market situation refineries
339-345
fracking lowers the price situation,
suppliers produce when it is worth it Fracking C3 US as exporter
348-357
supplier side is too low, suppliers
disappeared or consolidated supply demand balance C1
inbalance in supply and demand of jet fuel
357-362
uncertainty of suppliers, for instance Russia, where the price setting is not
entirely clear jet fuel price uncertainty C1 jet fuel price volatility
362-372
IATA to support and represent interests of all airlines in case of economic harm
to the industry IATA as industry support C8 IATA as support function
374-381
government adding additional charges without ensuring the infrastructure, united
against the taxes government taxation C8 additional taxation
Question 7
385-392
adequate infrastructure, enough stored jet fuel at the airport for 3-4 days, good competition between oil companies, reduction of trading, enough bio jet fuel production to use it commercially
improved infrastructure, fair competition, bio jet fuel availability, less
hedging C2,C7,C5
commercialization, market inequality, importance of infrastructure, hedging strategy
394-395;
397
stable competition between refineries
and therefore stable product fair competition C7 market inequality
81 Interview 2:
Line Paraphrase Generalization Category Coding
Question 1 2-5
volatility of jet fuel price is a critical issue for the last years, also for the future
jet fuel price volatility is
a critical issue C1 jet fuel price volatility
5-10
network planning difficult with volatility due to the profitability of routes, might be unprofitable at a high price
uncertainty in network
planning C7 network planning
10-14 prices used to be stable
jet fuel price volatility is
a critical issue C1 jet fuel price volatility 16-17
volatility of jet fuel price is a critical issue
jet fuel price volatility is
a critical issue C1 jet fuel price volatility
24-29
unchangable geopolitical factors, introduction of taxes and fees might influence the market
geopolitical factors
influence jet fuel price C8 additional taxation
31-35; 37
new taxes, make it difficult to compete if competitors do not have the same
supplements government taxation C8 additional taxation
Question 2 41-47
reduce volatility, try to have stable prices, around 500 to 700 dollars per ton
jet fuel price volatility is
a critical issue C1 jet fuel price volatility
49-54
today's level is realistic for a stable price, exporting countries like Russia and Saudia Arabia need the current level
jet fuel price increase or
stagnant C1 jet fuel price volatility
54-58
shale gas in the US will increase production when prices get too high, therefore possibly stable future
Fracking influences jet
fuel price C3 US as exporter
58-61
to introduce bio jet properly, higher jet fuel prices are needed
bio jet fuel introduction
needs higher prices C2 commercialization
64-75
bio jet is more of a marketing project right now, bio fuel for the transportation sector is developing and invested in, bio jet is very limited, bio jet market needs to be increased
bio jet fuel not sufficient
for commercial usage C2 technical availability
78-83
price is a factor, economic situation of airlines in Europe not well, jet fuel costs about 4-5 times more, no standardized source for bio jet yet
bio jet fuel not sufficient
for commercial usage C2 commercialization
84-93
price is too high so far, it is a test phase and costs are still to high, production needs to increase and a longterm feedstock needs to be found
bio jet fuel too high and
not commercialized C2 commercialization
82
Line Paraphrase Generalization Category Coding
Question 3
96-107
geopolitical factors lead to an uncertainty right now, also governmental regulations, differing taxes and regulations will give disadvantages to airlines
geopolitical factors influence jet fuel price,
government taxation C8 additional taxation 107-114
US oil will stabilized price, volatility will still be an issue
Fracking influences jet
fuel price C3 US as exporter
114-119
Europe airlines hedge, costly and could also cause bankruptcy in case of wrong hedging decisions, US market does not
hedge hedging to reduce risk C7 importance of hedging
122-130
high volatility needs hedging to adapt to price level, every airline has their own hedging strategy, wrong hedging strategy
has high consequences hedging to reduce risk C7 hedging strategy Question 4
134-154
Fuel saving programme to reduce the fuel cost as much as possible, unit costs have dropped over time, now fuel costs makes up a high part of the total cost structure, IT programmes to improve fuelling and flight routes
fuel efficiency investment to reduce jet fuel costs C6
impact of price on jet fuel efficiency
156; 158-
161 saving fuel is a high priority for the future
jet fuel price volatility is a critical issue C6
impact of price on jet fuel efficiency
Question 5
165-174
shale gas in the US has reduced jet fuel price, lates OPEC decisions try to increase jet fuel price again, reduced refinery capacity in Europe has a negative impact
Fracking influences jet fuel price, OPEC,
refinery change C3, C4
US as exporter, OPEC, market situation refineries
177-187
refineries are the best income for an oil company, European refineries shut down, increase of refineries abroadn, therefore more import and thus increases in price
decline of refineries in Europe, more import C4
market situation refineries Question 6
190-199
get competitive prices on bio fuel as soon as possible, initiatives for bio jet needs to be started, no competitive one on the market so far. Increase of taxes are expected to introduce bio jet
bio jet fuel introduction needs higher prices, not
commercialized yet C2 commercialization
200-214
government is setting up taxes, try to get bio jet in the market, discussions but no initiatives, work on the UN Plan, but bio jet needs to be introduced
government taxation, bio
jet fuel introduction C8,C2,C6
additional taxation, commercialization, jet fuel and its environmental impact
219-227
Global standards and restrictions as otherwise disadvantages are created
need for international
standards C7 market inequality
Question 7
235-245
bio fuel market is the most important, best way to reduce induced taxes and environmental taxes, investments are costly and not possible to do by oneself, oil companies are struggling as well
bio jet fuel future is essential, government
taxation, refineries C2,C8,C4
commercialization, additional taxation, market situation refineries 247-248
neither buyer nor seller has the financial capabilities
missing financial
capabilities C1,C7 financing
83 Interview 3:
Line Paraphrase Generalization Category Coding
Question 1
2-10
jet fuel price a critical issue, price volatility and geopolitical factors play a role, high impact on profit
jet fuel volatility is a
critical issue C1 jet fuel price volatility
12-19
hedging programmes are critical for the future, to lay off risk but risky itself, tough
competition hedging to reduce risk C7
importance of hedging, competitiveness
22-28
geopolitical factors have an influence on price, news can also affect the price, governmental impact is high
geopolitical factors influence price
C8,C7,C3, C1
additional taxation, inbalance in supply and demand, price influence political factors, artificial restriction 31-33; 35-
36
unbalanced supply can lead to huge price differences
Supply and demand balance affected C1
inbalance in supply and demand, jet fuel price volatility
Question 2
39-46
balance of supply and demand is important, price need to assure existence of oil companies, competition is strong
oil companies with difficulties, supply
demand balance affected C1
inequal supply and demand
48-52
fair competition as a desirable outcome, no disadvantages for airlines due to governmental regulations and support
fair competition,
government taxation C7,C8
competitiveness, additional taxation 54-56 fair competition through strategizing fair competition C7 competitiveness Question 3
60-62 jet fuel price is dependent on crude
dependent on strategy decisions of refineries and oil companies to
produce jet fuel C4 production of jet fuel
65-68
big oil companies withdraw the market and close refineries, more dependent on imports
dependent on strategy decisions of refineries and oil companies to produce jet fuel C4
market situation refineries
84
Line Paraphrase Generalization Category Coding
Question 4
74-85
hedging programme for all airlines, prices differ due to volume and credit worthiness, way to be competitive, innovative tendering also supports
competitiveness hedging to reduce risk C7 hedging strategy
88-99
efficiency is implemented by all airlines, to reduce operating costs, weight of the aircraft, fuelling, flight routes, engine
fuel efficiency
programmes C6
impact of price on fuel efficiency
102-104
operations has a constant look on efficiency
fuel efficiency
programmes C6
fuel efficiency programme Question 5
107-120
US Fracking is an important development in the past, changed price situation in the market, fuel-efficient engine, bio fuel is a development but to costly at the moment
Fracking, fuel efficiency, bio jet fuel needs higher
market prices C3, C6, C2
US as exporter, impact of price on fuel efficiency, commercialization Question 6
123-132
no alternative to jet fuel at the moment, not enough availablity of bio fuel
bio jet fuel is not
commercialized yet C2 commercialization Question 7
136-147
standardization of jet fuel handling, which could save money and be more efficient, cost-based pricing, without interference of geopolitical factors, no trading on oil, supply demand balance
infrastructure improvement, jet fuel price volatility is a critical factor, geopolitical factors, hedging to reduce risk,
supply demand balance C5,C1,C7
importance of infrastructure, jet fuel price volatility, price influence political factors, importance of hedging, inbalance in supply and demand
150-154 Europe is dependent on imports
closure of refineries, dependent on strategy of oil companies and
refineries C4 market situation refineries
85 Interview 4:
Line Paraphrase Generalization Category Coding
Question 1
3-15
jet fuel is a critical issue, due to volatility, difficult to plan and forecast, affected by external factors like geopolitics
jet fuel volatility is a critical issue, geopoliticial factors
affect price C1, C3
jet fuel price volatility, price influence political factors
18-26
OPEC decisions, shale oil in the US, demand supply balance are affected, airline cannot influence factors
OPEC, Fracking, demand supply balance,
geopolitical factors
influence price C3, C1
OPEC, US as exporter, inbalance in supply and demand, price influence political factors Question 2
29-40
low prices but stable at the same time would be desirable, fuel efficiency programmes which reduce fuel usage
fuel efficiency
programmes, stable price
desirable C6, C1
impact of price on fuel efficiency, jet fuel price volatility, fuel efficiency programme
Question 3
43-52
OPEC influences supply which leads to price volatility, hedging is needed to take out risk
geopolitical factors, OPEC, jet fuel price volatility is a critical issue, hedging to reduce
risk C3,C7,C1
OPEC, hedging to reduce risk, jet fuel price volatility, artificial restriction 55-61
rolling hedging strategy, to secure prices
on the market and reduce the volatility hedging to reduce risk C7 hedging strategy Question 4
64-90
hedging to secure, also work on fuel efficiency programmes like flight routes and weight, trying to reduce service costs to transfer from refinery to aircraft
hedging to reduce risk, fuel efficiency programme, fuel
infrastructure costs C7,C5,C6
hedging strategy, infrastructure costs, fuel efficiency programme Question 5
93-94; 97- 106
OPEC undecisiveness influences the jet fuel price, shale oil in the US, economic and geopolitical factors have an influence, oversupply
geopolitical factors, OPEC, fracking, demand
supply balance C3,C1
OPEC, price influence political factors, US as exporter, artificial restriction
110-116
Reseller which are on the market, flexible, sell jet fuel for competitive prices
oil and refineries strategy, new market
player reseller C5 reseller as supplier
Question 6
128-143
create synergies by buying fuel together with other airlines, joint procurement
joint procurement, jet fuel
price C1
impact on
competitiveness, cost structure part Question 7
147-155;
157
low prices but still profitable for the oil companies, stability is also key
fair competition, jet fuel price volatility is a critical issue, supply
demand balance C1
jet fuel price volatility, market competitiveness, inbalance in supply and demand