$112m bond deal to boost jet fuel network

Logan International Airport officials are planning a $112 million bond deal to upgrade the airport jet-fuel supply network and refinance old bonds.

The Massachusetts Port Authority, which runs Logan, has scheduled a hearing tomorrow morning at the airport on the proposal. It involves bonds being issued through Massport on behalf of a company called BOSFUEL, an airline-owned consortium founded in 1997 that runs a communal jet fuel supply system that dispenses about 360 million gallons of fuel annually.

About $15.6 million of bond proceeds would be used to replace fuel lines in and around terminals B and C to make them safer and reduce possible environmental hazards from fuel leaks. Another $96.1 million would be used to retire BOSFUEL bonds issued 10 years ago, which Massport predicts could save $13 million in interest and debt-service expenses. Fees that airlines pay BOSFUEL for supplying them jet fuel would pay off the bonds.

Subject to Massport's board approving the deal Thursday, bonds could be sold later this month and the 1997 bonds redeemed in July. BOSFUEL is owned by 24 airlines in proportion to how much fuel they buy.
(By Peter J. Howe, Globe staff)

Logan airport wants to use some bond money to replace fuel lines.