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African Airlines to Purchase Fuel Jointly

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Nine African airlines have teamed up to purchase fuel jointly in an effort to benefit from better bargains through increased negotiating power. The new plan is a pilot project by the African Airlines Association which aims to reduce operational costs for its member airlines. It is estimated that fuel alone accounts for between 40 to 50 per cent of an airline's direct cost. Direct costs for regional airlines are at an average of 70 per cent of all expenses incurred.
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