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

ecuador avgas price subsidy pilot schools general minor aviation

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Minor aviation operators and aviation schools from Ecuador expressed their concern about the increase in fuel prices EXHAUST for their operations after withdrawing the subsidy.

planes on the ground, students without being able to advance with their dream of being pilots and many jobs at risk, all this due to a statement generated by Petroecuador addressed to private operators and an interpretation of who benefits or not from the subsidy that AVGAS had for private flights and schools..

This all started overnight at the end of last June, when private operators and pilot schools began to be informed that they would stop receiving the Avgas Nacional price for the Avgas Particular price, which generates an increase of 3 times more in the value they pay.

It should be noted that, This decision affects private, schools, but the operators are fumigators, air taxi and air ambulance will not see the increase in the price of Avgas, generating an act that we could even call discriminatory, by directly affecting a sector that trains the future pilots of the country that are so needed and another that is a driving force of the country's economy thanks to its private and business activity..

AVGAS subsidy eliminated for private companies and schools

As we mentioned in the introduction of this publication, The private aviation sector and pilot schools have seen their 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 very important operation of these Ecuadorian aviation actors.:

avgas aviation price ecuador private flights schools subsidy

Until before the indicated date, The schools paid per gallon of AVGAS for their students the value of $2.76, but after Petroecuador's decision, must cancel the value of $8.06 per gallon, an increase of 292%.

As reference, one hour flight Cessna 152 went from costing $160 in a pilot school $192, which would represent a total increase of $9.600 dollars if we think that a student needs to add at least 300 flight hours to be competitive when looking for work.

This impact is enormous and puts the future of pilot training at risk. Ecuador, where schools could close as demand decreases, since future pilots will have to look for cheaper options in other countries.

With this perspective and uncertain future, different representatives of the aviation industry in the general aviation segment sent a statement addressed to the President of the Republic, where among other points, the importance of this branch was explained:

  • Minor aviation plays a crucial role in the generation of connectivity and air transportation of goods and people for strategic reasons 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. What's more, We comply with the requirements and rights established by the competent authority and we contribute in emergencies and natural disasters when the country requires it.. What's more, We want to indicate that all Ecuadorian registered aircraft are part of the air reserve.
  • Currently, minor aviation 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 happened from 2,8 a 8 dollars per gallon, since this would generate a significant economic imbalance in the operating costs of our aircraft. We consider it convenient to evaluate whether the economic savings generated compensate for the disappearance of Ecuadorian minor aviation..
  • It should be noted that minor aviation represents more than 50% of reported flights, mainly on the coast, according to statistics from the José Joaquín de Olmedo International Airport and other airports on the coast nationwide.

It's like this, that the different signatories of said communication request the President to review this decision, which is contradictory to the sovereignty of Ecuadorian minor aviation., and that the preconditions are maintained so that those affected can continue to operate effectively and continue contributing to the economic development of the country..

We trust in a prompt review of this problem that could widely affect the development of Ecuadorian aviation..

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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.