June 6, 2019 / 4:04 PM / 13 days ago

Airlines complain about rates to ship jet fuels on Buckeye's pipeline

NEW YORK (Reuters) - Major airline companies have complained to U.S. regulators about fees to ship jet fuel on Buckeye Pipe Line Company’s refined products line to New York City area airports, saying they have each overpaid between $900,000 and $1.7 million.

American Aviation Supply LLC, Delta Air Lines Inc, JetBlue Airways Corp and United Airlines called Buckeye’s rates “unjust and unreasonable,” according to a complaint to the Federal Energy Regulatory Commission dated on Wednesday. The company in 2018 over-recovered its cost of service by about 16.6%, the complaint added.

Each complainant overpaid between $0.9 million and $1.7 million from May 1, 2017 to April 30, 2019, the complaint said.

Buckeye parent company, Buckeye Partners LP, could not immediately be reached for comment.

The company’s pipeline transports petroleum products between Linden, New Jersey and the New York City market, including Newark Liberty International Airport, John F. Kennedy International Airport and LaGuardia Airport.

Reporting by Stephanie Kelly; Editing by Bill Berkrot

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