Aviation Information

Airline Fuel Costs Mount


The airlines are huge users of fuel. Fuel costs are higher than even the cost of the aircraft. Surcharges are up to the highest point in the history of the airlines along with the fuel costs at an all time record cost. Airline tickets and airlines live and die on their ability to number one fill up planes and number two, manage their fuel costs. Discount Airlines have been able to keep flights full in order to order to cover costs and keep prices low, but are hurt in quarterly earnings every time fuel prices increase.

When fuel prices stay high, you often see massive downward spirals and negative sector rotations in Airline Stocks. Again it is all about the cost and flow of fuel. It is of interest when we hear talk of our National Debt and how important that is. "A Nation is not in danger of financial disaster merely because it owes itself money." The flow of fuel is several times more important than that, because with proper flow and economies of scale, every thing works better and every one wins. Consumers have lower prices and more choices; governments have greater tax revenues due to more commerce and more jobs paying into the system; industry has higher profits and more money to expand; the stock market moves upward provided greater benefits for those who bet on a strong America and therefore greater investment in new companies which provide innovation and research and development to improve the flow of every thing we know. Speaking of the benefits of the flow of fuel to government in the tax revenues, just think of all the fuel the government uses at all levels? Incredible amounts at every level; so incredible that they along with private enterprise spend millions of dollars trying to figure out more efficient methods. The military uses so much fuel it has it's own reserves and oil fields and contracted out refineries. It has about enough supply for the entire country for 60-90 days depending on our conservation levels in a crisis situation. Fighting a war takes a tremendous amount of fuel. The modern Aircraft carriers use nuclear power, like the submarines, but the rest of the world's greatest arsenal uses fuel of various types. And they are always testing different fuels to increase performance in different situations.

These reserves have been used when OPEC plays hardball creating fuel prices above our ability to operate our industries and businesses and keep America employed and the wheels of commerce turning. Opening up the floodgate of supply, lowers the prices and puts the cartel in check. If not certain businesses become un-viable when fuel prices go too high. Think of the military aviation, jets, helicopters, UAVs, AWACs, bombers and even flying gas stations in the sky for aerial re-fueling. It is like running several airlines non-stop 24/7. Generally Airlines too are a 24-hour business. The airline industry is under extreme pressure now.

If they keep raising their fees to passengers then the passenger per plane ratios drop off, meaning flight are unprofitable. If they do not raise the price then they lose money. It is a no win situation and they need some fuel price stabilization, yet an already hampered industry is facing additional crisis from fuel costs. We have seen already four major airlines file bankruptcy and two out of business, two more are facing bankruptcy and several are considered bad risks from ever emerging from their bankruptcies. The flow and costs of fuel are critical to the airline industry and the future of air travel in the World.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs


MORE RESOURCES:
Google

BBC News

? Mike Lo, aviation specialist and former chairman of Far Eastern ...
Taipei Times, Taiwan - 6 hours ago
Mike Lo (???), an aviation specialist and former chairman of Far Eastern Air Transport (??), was also optimistic. ?It will take time for cross-strait ...
China Eastern Airlines to set up Taiwan office Xinhua
Chinese Officials Hail Launch of Weekend Cross-Strait Flights 4 Jul RedOrbit
Airline to set office in Taiwan Shanghai Daily
Xinhua - Xinhua
all 956 news articles


TopNews

Aviation sector?s own scandal
Daily Sun, Nigeria - 1 hour ago
By Sun News Publishing The moThe recent arraignment of two former aviation ministers, Professor Babalola Borishade and Femi Fani-Kayode, and the erstwhile ...
Aviation fund probe: NAMA director arrested - As FAAN ex-MD denies ... Nigerian Tribune
Borishade, Fani-Kayode in shock over court?s decision The Punch
Usman, Aondoakaa Absent at Aviation Probe Panel Sitting This Day
The Punch - This Day
all 216 news articles


CASA to take against pilot over Alice landing
ABC Online, Australia - 1 hour ago
The Civil Aviation Safety Authority (CASA) says it will be taking action against a pilot who clipped trees while trying to land at Alice Springs last month. ...
Pilots fly without controllers Sydney Morning Herald
Air traffic controller shortage causes flight delays Melbourne Herald Sun
Traffic controller shortage delays Melbourne flights The Age
ABC Online - Sydney Morning Herald
all 47 news articles


LIVENEWS.com.au

Boeing argues for open skies
Melbourne Herald Sun, Australia - 10 hours ago
THE Federal Government has been urged by global aviation giant Boeing to allow foreign airlines to compete against Qantas on the lucrative Pacific route. ...
Fresh call for Qantas to share lucrative LA route Sydney Morning Herald
Councils furious over Qantas' curfew call ABC Online
Airlines call for night curfew scrapping NEWS.com.au
LIVENEWS.com.au - Trading Markets (press release)
all 39 news articles


Aviation: FAAN faults PHCN over N720m annual bill
The Punch, Nigeria - 23 hours ago
... airlines are the safest means of transportation in the world, lack of adequate power remains a major set back in the aviation industry in the country. ...
>>FAAN Boss Stresses Importance Of Technology In Aviation Securi LeadershipNigeria
How not to waste resources on relocation The Punch
all 4 news articles


Australian aviation policy needs flexibility, capital and ...
e-Travel Blackboard (press release), Australia - 58 minutes ago
The proposed National Aviation Policy Statement (White Paper) has been acknowledged by Qantas CEO Geoff Dixon as timely, and provides the industry with an ...


Sify

India MCX bourse to trade aviation fuel futures July 7
Reuters UK, UK - Jul 5, 2008
MUMBAI, July 5 (Reuters) - India's Multi-Commodity Exchange (MCX) will launch aviation turbine fuel futures from July 7, the bourse said in a press ...
MCX set to kick off ATF futures Sify
ATF futures to hit market from Monday Hindu
Rate This Article Financial Express
Livemint
all 14 news articles


Flight cuts reflect broken air travel system, expert says
McClatchy Washington Bureau, DC - 3 hours ago
There are numerous unsettling surprises for regular flyers in the book, including the fact that very little of aviation communications involves digital data ...


The Canadian Press

A century ago, aviation marvel occurred with flight by Glenn Curtiss
The Canadian Press,  N.Y. - Jul 4, 2008
"I'm well aware of their genius, but I think the Wright brothers also hampered the development of American aviation through patents and court battles," ...


Small plane makes emergency landing on Seal Beach
San Francisco Chronicle,  USA - Jul 4, 2008
The pilot suffered minor cuts and bruises, Federal Aviation Administration spokesman Ian Gregor said. No one on the beach was hurt. ...
Small plane makes emergency landing on Seal Beach San Jose Mercury News
Banner Tow Plane Down In CA: Pilot OK Aero-News Network
Plane makes biggest splash at OC beaches on the 4th OCRegister
Long Beach Press-Telegram - OCRegister
all 40 news articles

Aviation - Google News

home | site map
© 2006