Concern in Ecuador due to the increase in the price of AVGAS

ecuador avgas price subsidy pilot schools general minor aviation

Aviation operatorsón minor and aviation schoolsón from Ecuador showed their concernón due to the increase in fuel prices EXHAUST for their operations after withdrawing the subsidy.

planes on the ground, students unable to advance with their dreamñto be pilots and many jobs at risk, all this due to a statement generated by Petroecuador addressed to private operators and an interpretationón of whoméwhether or not they benefited from the subsidy that AVGAS had for private flights and schools.

All this startedó from night to morningñAna at the end of last June, when it startedó to inform private operators and pilot schools to stopíto receive the Avgas National price for the Avgas Particular price, which generates an increase of 3 times más in the value that they pay.

It should be noted that, this decisionón affects private, schools, but the operators are fumigators, taxi toéreo and ambulance toérea not seeán the increase in the price of Avgas, generating an act that couldíwe love to call it even discriminatory, by directly affecting a sector that trains future pilots of the countryís that is so needed and another that is a driving force of the economy.íto the país thanks to his private and business activity.

AVGAS subsidy eliminated for private companies and schools

As we mentioned in the introductionón of this publicationón, the aviation sectorón private and pilot schools have seen práits operations practically paralyzed due to the forced increase, paying the international price of AVGAS, As we will see in this table, It is a disproportionate increase for the operationón so important of these aviation actorsóecuadorian n:

avgas aviation price ecuador private flights schools subsidy

Until before the indicated date, schools paid per galón of AVGAS for their students the value of $2.76, but after the decisionóNo. of Petroecuador, dutyán cancel the value of $8.06 by galón, an increase of 292%.

As reference, one hour flight Cessna 152 notó to cost $160 in a pilot school $192, what to representíto a total increase of $9.600 dólares if we think that a student needs to add at least 300 flight hours to be competitive when looking for work.

This affectationón is enormous and puts the future of training at risk.ónumber of pilots in Ecuador, where schools caníto close after seeing its demand decreased, since future pilots will haveán to look for options más económicas in other países.

With this perspective and uncertain future, different representatives of the aviation industryón in the aviation segmentóIn general, they sent a statement addressed to the President of the Republicública, where among other points, I explain myselfó the importance of this branch:

  • the aviationón lower performanceñto a crucial role in the generationón connectivity and transportationécriminal of property and people for strategic reasonségics for the Ecuadorian business sector. It is based on the use of its own aircraft to achieve efficiency in travel times and attend to different activities carried out by executives., key personnel and the transfer of goods and supplies for cost reasons, time and profitability. Además, We comply with the requirements and rights established by the competent authority and contribute in emergencies and natural disasters when the país it requires it. Además, We want to indicate that all aircraft of matríEcuadorian people are part of the reserveérea.
  • Currently, the aviationón minor in Ecuador has 98 registered aircraft using aero avgas fuel. Nevertheless, We are concerned about the recent increase in the price of this fuel, what notó from 2,8 a 8 dóhomes per galón, since this generateíto an economic imbalanceósignificant impact on operating costsón of our aircraft. We consider it convenient to evaluate whether the economic savingsógenerated monkey compensates for the disappearanceón of aviationóEcuadorian minor n.
  • It should be noted that the aviationóminor n represents más of the 50% of reported flights, mainly on the coast, themselvesún the statesíStatics of the José International Airporté Joaquín Olmedo and other airports on the coast nationwide.

Are youí, that the different signatories of said communicationóThey ask the President to review this decisionón that is contradictory to the sovereigntyíto the aviationóEcuadorian minor n, and that the preconditions are maintained so that those affected can continue to operate effectively and continue contributing to economic development.ópa's friendís.

We trust in a prompt reviewón of this problemáethics that couldíto widely affect the development of aviationóecuadorian n.

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2 comments on “Concern in Ecuador over AVGAS price increase”

  1. VINCENT OSWALDO CARLOSAMA

    all costs are transferred to the end user, entrepreneurs do not lose, However, the development of many activities is halted, including minor aviation.