Risk Management

As an airline the price of Jet fuel is at the core of your business. Jet fuel price volatility can have a fundamental impact on an airlines profitability, your cash flows, your competitiveness and your overall ability to do business.

Managing your exposure to the price of Jet fuel requires an in-depth knowledge of the complexities of the physical and financial markets, an understanding of the available tools in addition to access to the right, real time, information.

BP has over 100 years experience in the energy markets and for the last 20 years has been helping airline customers apply this knowledge when managing their fuel price risk. With our combination of financial trading and physical market expertise we can help you understand the types of risk management tools available, and to help put in place the most suitable risk management programme for your business.

Air BP is able to combine BP’s extensive trading skills with its own primary and secondary distribution logistics to provide you with competitive risk management solutions as part of your physical fuel supply.

Britannic Trading Limited (BTL) can offer a range of financial risk management products that are concluded as separate derivative transactions and are independent of your physical fuel supplier.

Fixed Price

Fixed price transactions result in a known fuel price for a specified volume, period and location. This structure could be useful for a company that wishes to lock-in fuel costs against term contracts with customers or meet a budgeted fuel cost. A fixed price contract requires no premium payment.

Capped Price

Capped price transactions allow you to agree a maximum price for a specified volume, period and location yet also allow you to participate in lower prices if the market falls. You pay a “cap premium” for this protection against rising prices.

For further information, please contact your local BP risk management representative (see below), or your Air BP Account Holder.

Risk Management Marketing Team

Nick Allnutt (Europe)

+44 (0) 207 948 8381

nick.allnutt@bp.com

Mike Galassini (USA)

+1 (312) 594 8707

mike.galassini@bp.com

Saing leong Ng (Singapore)

+65 6477 6572

saing_leong.ng@bp.com

This is not an offer or invitation by or on behalf of Air BP or any of its affiliates to enter into any of the risk management arrangements described. The actual terms and conditions of any contract for a specific arrangement between a customer and Air BP may differ from the arrangements described. Entering into any risk management product arrangements may expose the customer to financial risk and, in certain jurisdictions, may be restricted by law.

Any investment products or services described above, including derivatives transactions, are offered by Britannic Trading Limited (BTL). BTL is authorised and regulated by the UK Financial Services Authority to provide certain investment services in the UK. Any investment services described herein are intended for only Eligible Counterparties or Professionals as those terms are defined by the UK Financial Services & Markets Act 2000 and the FSA Handbook, or only for Eligible Contract Participants as that term is defined in the U.S. Commodity Exchange Act.