Airlines fear fuel rationing due to 'ramshackle system'

Despite a reporting system set up by the Howard government after severe rationing occurred, airlines claim the system is often ineffective and that "communications break down".

The Board of Airline Representatives, representing international carriers serving Australia, including Virgin Blue and Qantas, has raised concerns about the "less than satisfactory" reporting by oil companies of jet fuel supplies after a disruption at Melbourne Airport over four days in April. The board's executive director, Warren Bennett, said fuel rationing at main airports could occur again "because there are weak links in the chain".

"It's just a bit of a ramshackle and rundown system that we have in Australia. It could blow up and be a real problem in the future," he said yesterday.

"Because we are reliant on imports, the potential for supply disruptions is that much greater. Disruptions will likely increase in the future."

The Sydney fuel crisis lasted weeks, costing airlines hundreds of thousands of dollars, and led to an independent inquiry. The committee that now oversees supply reporting does not include airline representatives. Apart from one government-appointed adviser, David Wood, the group comprises oil company representatives.

But Professor Wood, who chaired the inquiry in 2003, said the system had worked well. "I certainly don't see anything at the moment that would cause them sufficient concerns to warrant national media coverage," he said.

The airline body also complains that jet fuel supplies are dominated by several oil companies and should be opened to more competition. Shell and Caltex are the biggest suppliers, followed by BP and Mobil.

"It's a cosy group that has full control of the ownership and distribution," Mr Bennett said. "They have protocols in place but they don't tend to follow them fully."