Esso courts Cayman Airways

Alan Neesome,
Country Manager for Esso
Grand Cayman

Wednesday,  December 7, 2005

One month before the licence to supply jet fuel at the Owen Roberts International Airport comes up for review, the national carrier Cayman Airways is holding discussions with a new partner.

Esso, Grand Cayman disclosed to Cayman Net News that it was in talks with CAL the National Flag Carrier as an alternate provider to Texaco Caribbean, the only fuel supplier at the airport.

Country Manager for Esso Grand Cayman Alan Neesome said discussions involving both parties have been held.

“Esso has had several discussions with Cayman Airways management  in regard to providing jet fuel at the airport. Recently, we were approached by the Cayman Airways board,” he said.

Chief Executive Officer of Cayman Airport Authority David Frederick said the jet fuel supply licence at the airport ends shortly and the board would be discussing the applications before it in January.

“Esso made a presentation for a licence and it will be on the agenda of the board meeting in January. At that meeting we will also look at the jet fuel supply licence which ends around the same time,” he said.

Attempts to speak with Cayman Airways and Texaco on the latest development were unsuccessful up to press time.   

The Cayman Airways and Esso discussions come two months before low-cost airline Spirit Air lands on Grand Cayman with promises of lower airfares to US cities from the Owen Roberts International Airport.

Local and international airlines have been blaming the high cost of fuel for hikes in airfares with many filing for bankruptcy in the US and other parts of the world.  

Mr Neesome said talks had started three years ago between Esso’s parent company Exxon Mobil Aviation and management of Cayman Airways. 

“Esso has been pursuing entry into the Owen Roberts International Airport since March 2001 and over that time has made several presentations to CAA and past government,” he said.

The Esso official said plans are already in place to immediately provide fuel to planes if a licence is granted. 

“We estimate six to nine months from being granted an option to supply at the airport to put a permanent fuel facility close by.

“There may be a shorter term option which we are investigating where we supply direct from the Esso oil terminal and use a refueller truck at the airport,” he said.

The long-term plan of the company is the construction of its own fuel storage facility and plane fuelling operations at the airport.

“Esso is prepared to lease land from the CAA for the purposes of constructing a separate aviation fuel storage facility and establishing a separate into-plane-refuelling operation,” he explained.

The recent government approval of the airport expansion seems an ideal time to locate the facility, said the Esso manager.

Mr Neesome believes the competition would lead to reducing airline-operating costs that would make Grand Cayman an attractive destination for the airlines.

“Competition will result in lower fuel prices than the airlines are paying today,” he said.

Flexibility and security concerns, according to the Esso official, led to its offer to supply fuel at the airport.

“An additional supplier of jet fuel in Grand Cayman will provide greater flexibility and security in case of emergencies or other situations than having only one supplier.

“For example, the likelihood of running out of certified jet fuel on the airport is greatly reduced,” he said.

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