Just received from UAL

[§kyye Candy]

An open letter to all airline customers

Dear _________________,
Last week, crude oil hit an all-time high of $146, and the skyrocketing cost of fuel is impacting our customers, our employees, the communities we serve, and the economy as a whole. United, and the majority of other major U.S. airlines, are asking our most loyal customers to join us in pushing for legislation to add more transparency and disclosure in the oil markets. Please see the attached open letter from the leaders of the U.S. airline industry.

An Open letter to All Airline Customers:
Our country is facing a possible sharp economic downturn because of skyrocketing oil and fuel prices, but by pulling together, we can all do something to help now.

For airlines, ultra-expensive fuel means thousands of lost jobs and severe reductions in air service to both large and small communities. To the broader economy, oil prices mean slower activity and widespread economic pain. This pain can be alleviated, and that is why we are taking the extraordinary step of writing this joint letter to our customers. Since high oil prices are partly a response to normal market forces, the nation needs to focus on increased energy supplies and conservation. However, there is another side to this story because normal market forces are being dangerously amplified by poorly regulated market speculation.

Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.

Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper.

The nation needs to pull together to reform the oil markets and solve this growing problem.
We need your help. Get more information and contact Congress by visiting www.StopOilSpeculationNow.com.

Robert Fornaro
Chairman,
President and CEO
AirTran Airways

Bill Ayer
Chairman,
President and CEO
Alaska Airlines, Inc.


Gerard J. Arpey
Chairman, President and CEO
American Airlines, Inc.

Lawrence W. Kellner
Chairman and CEO
Continental Airlines, Inc.

Richard Anderson
CEO
Delta Air Lines, Inc.

Mark B. Dunkerley
President and CEO
Hawaiian Airlines, Inc.

Dave Barger
CEO
JetBlue Airways Corporation

Timothy E. Hoeksema
Chairman, President and CEO
Midwest Airlines

Douglas M. Steenland
President and CEO
Northwest Airlines, Inc.

Gary Kelly
Chairman and CEO
Southwest Airlines Co.

Glenn F. Tilton
Chairman, President and CEO
United Airlines, Inc.

Douglas Parker
Chairman and CEO
US Airways Group, Inc.

 

[regionalcap]

multiple threads already on this....hope it works though

 

[§kyye Candy]

multiple threads already on this....hope it works though

I don't know how there could be multiple threads already, since I happen to be on FI when it came through in email and I posted it immediately. (Well, as long as it took to cut and paste.) Maybe there are similar letters from other carriers?

Oh well. Anyway, if that's the case, I'm sorry - I try not to clutter things up.

 

[Guitar Guy]

I don't know how there could be multiple threads already, since I happen to be on FI when it came through in email and I posted it immediately. (Well, as long as it took to cut and paste.) Maybe there are similar letters from other carriers?

Oh well. Anyway, if that's the case, I'm sorry - I try not to clutter things up.

Several airlines have already sent this out - you'll note that many different airline CEO's are shown as "signing" it. If I recall correctly, the first copy of that form letter that I received was from Delta. I've also gotten copies of it from Northwest as well as United.

 

[§kyye Candy]

Several airlines have already sent this out - you'll note that many different airline CEO's are shown as "signing" it. If I recall correctly, the first copy of that form letter that I received was from Delta. I've also gotten copies of it from Northwest as well as United.

Yes, I noticed that (the signatures) - I should have checked before I posted. Then again, with 20,000 members I suppose things will get re-posted from time to time. Thanks for the clarification.

 

[contrail67]

I know United said they want legislation about this by the end of July...glad to see everyone is on the same page.....will see if it works.

 

[~~~^~~~]

Problem is the dollar, Bush, Congress and the US Consumer's profligate spending. No one wants to suck it up and lose the White House, a seat in congress, or their $500,000 Florida condo.

The good faith in the US Dollar has been used to take the hit and anyone who has saved for their future is looking for a place to store value. In the absence of Dollar stability, oil makes a darn good substitute.

Regulation will push oil markets off shore to a more wild west venue like Dubai. If pension funds, insurers, banks and others can't trade in oil, they will find another trade somewhere and the trend will pop up in a new, unexpected, and unwelcome, place.

The answer is to fix the Dollar. The market is working. Trying to adapt State Control is a very Stalinist answer to the problem. By the way, the Russians lost all their money when their market controls failed & currency devaluation resulted.

 

[§kyye Candy]

The answer is to fix the Dollar. The market is working. Trying to adapt State Control is a very Stalinist answer to the problem. By the way, the Russians lost all their money when their market controls failed & currency devaluation resulted.

I'm glad you said that - it's sort of along the same lines I was thinking, but curious what input others have as well. Stalinist thinking coming from Airline Management? Say it isn't so...

By the way, great user name!

 

[JoeMerchant]

Problem is the dollar, Bush, Congress and the US Consumer's profligate spending. No one wants to suck it up and lose the White House, a seat in congress, or their $500,000 Florida condo.

The good faith in the US Dollar has been used to take the hit and anyone who has saved for their future is looking for a place to store value. In the absence of Dollar stability, oil makes a darn good substitute.

Regulation will push oil markets off shore to a more wild west venue like Dubai. If pension funds, insurers, banks and others can't trade in oil, they will find another trade somewhere and the trend will pop up in a new, unexpected, and unwelcome, place.

The answer is to fix the Dollar. The market is working. Trying to adapt State Control is a very Stalinist answer to the problem. By the way, the Russians lost all their money when their market controls failed & currency devaluation resulted.

This is exactly what Ron Paul said today at the finance sub-committee hearings.....I don't think Maxine Waters understood however....She just wanted a head on a platter....

 

[j41driver]

Maybe there are similar letters from other carriers?

Gee ya think? It was only signed by AirTran, Alaska, American, Continental, Delta, Hawaiian, JetBlue, Midwest, Northwest, Southwest, United, and USAirways.

 

[Superpilot92]

the problem is the dollar, supply and demand AND SPECULATION. Speculation can be fixed NOW the others will take some time. Reduce the speculation you calm the Volatile oil market by 30-40 dollars a barrel.

This is crippling our economy and our industry. Something needs to be fixed NOW.

 

[JoeMerchant]

the problem is the dollar, supply and demand AND SPECULATION. Speculation can be fixed NOW the others will take some time. Reduce the speculation you calm the Volatile oil market by 30-40 dollars a barrel.

This is crippling our economy and our industry. Something needs to be fixed NOW.

Just curious, how do you "fix" speculation? What if it moves offshore? Is any speculation OK?

 

[skiandsurf]

Problem is the dollar, Bush, Congress and the US Consumer's profligate spending. No one wants to suck it up and lose the White House, a seat in congress, or their $500,000 Florida condo.

The price of oil is going thru the roof, and congress does nothing (actually they go on vacation).

But...

Roger Clemens is accused of using steroids, and STOP THE PRESS....lets have congressional hearings on steroid usage.

The govt doesnt give a sh!t. The Dems want things going bad for the election. The Republicans...well they dont have the majority in congress, their hands are tied.

 

[§kyye Candy]

Gee ya think? It was only signed by AirTran, Alaska, American, Continental, Delta, Hawaiian, JetBlue, Midwest, Northwest, Southwest, United, and USAirways.

Who pi$$ed in your cheerios? Have you ever heard of the phrase "polite conversation?" A little of that can go a long way.

I thought I apologized already, but allow me to rephrase myself to suit Your Highness ~ "I am sure other carriers besides UAL have sent out a similar letter. Just trying to pass on some info. Sorry to bore or inconvenience anyone."

Better?

 

[j41driver]

Skyye....

All the recent stuff here at the Tranny plus sitting in DCA on a 4+ hour wx delay must have gotten to me. Should have turned my sarcasm meter down a bit. My apologies.

-j41driver