The AFRAA Fuel Committee finalized the second tender awards for 2013 which saw the volumes increase to over 1 billion litres, with the number of locations increasing to 110, up from the first tender's 53 locations. The number of participating airlines also increased from 8 members to 13 members.
The team which comprised of the fuel procurement managers and finance personnel from the respective airlines carried detailed analysis which resulted in significant savings for the members. The Committee noted that suppliers had supported the project with very few exceptions and the feedback was positive. The suppliers were of the view that the process was fairly conducted.
|Round one negotiations of the 2013 fuel tender|
Tender Progress and Negotiation Phases
Each member committed volumes at the various locations and provided the Secretariat with their fuel suppliers at the various locations. The airlines also notified their fuel suppliers of the joint tender which was issued through AFRAA via a communique.
Fuel Negotiation Stages
Stage 1: 1st round of negotiations where the fuel suppliers had an option of either calling in or having a face to face negotiation.
Stage 2: 2nd round of negotiations where the suppliers had the opportunity to improve on their bids.
Stage 3: The final stage involved the suppliers providing their best and final bids which were not subject to further negotiations.
The technical team reviewed the bids and prepared the final report for the Committee, making recommendations on the awarding of the tenders to the most competitive suppliers. Some of the key issues reviewed were taxes and charges, price basis and payment currency. A precondition is that the price is uniform to all the members but the contracts would be signed between the fuel supplier and the participating individual airline. Payment terms would be agreed and included in the individual contracts.
The Secretary General of AFRAA, Dr Elijah Chingosho commended Fuel Committee members who worked day and night to ensure that the tender was successful. He noted that the team was an asset to their airlines and was impressed with their capacity and in-depth understanding of the tender process. He also noted that the savings had a positive impact on the bottom line and this reconfirmed AFRAA's position that jointly African Airlines working together can ride the tide of the turbulent economic environment.
AFRAA Fuel Committee Members:
1. Eng. Chris Oanda: Chairman (Kenya Airways)
2. Ms. Saba Deressa: Vice Chairman (Ethiopian Airlines)
3. Mr. Brian Mbuti: Lead Negotiator (Kenya Airways)
4. Mr. Terence Naicker: Technical Team (TAAG Angola)
5. Mr. Gregory Sanga: Analyst (Kenya Airways)
6. Ms. Bithian Munjidi: Expert Taxes and Charges (Kenya Airways)
7. Ms. Fainora Bosibori: Advisor on quality checks (Kenya Airways)
8. Mr. Richard Furama: Technical Team (RwandAir)
9. Mr. Haja Andrianarivelo: Technical Team (Air Madagascar)
10. Ms. Hanitra. Rakotomalala: Technical Team (Air Madagascar)
11. Mr. Ivo Nhamaze: Technical Team (LAM Mozambique)
12. Mr. Musenge Shebele: Technical Team ( Air Namibia)
13. Mr. Mustwafa: Technical Team (Astral-Aviation)
14. Mr. Leonidas Ndabazaniye: Technical Team (Air Burundi)