Cutting Back Flying Due to Fuel???

Rabble

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I was wondering if any corporatations have started reducing nonessential flying or cutting back on flying/parking aircraft as a result of the slowing economy and the dramatic increase in fuel prices.

I think we're starting to see this happen in some flight departments.
 

SheGaveMeClap

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Most corporations have an airplane for business purposes, they can afford fuel. If they cut back on flying because of rising fuel prices, you might want to start looking for another job, because they might cut back on pilots too.
 

Jack Schitt

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Rabble said:
I was wondering if any corporatations have started reducing nonessential flying or cutting back on flying/parking aircraft as a result of the slowing economy and the dramatic increase in fuel prices.

I think we're starting to see this happen in some flight departments.
Chicken Little? Is that you?
 

Rabble

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Obviously corporations use the aircraft as a business tool but any finance guy worth his salt will recognise the law of diminishing returns.

At some point the cost of flying the aircraft will exceed the value produced or the value of the passenger's time.

Just wondering if any of this has started to happen.

-Chick'n Little
 

HMR

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Rabble said:
At some point the cost of flying the aircraft will exceed the value produced or the value of the passenger's time.
Gas will have to get A LOT more expensive to reach that point for us.

I haven't heard a single quality operator around here worrying about fuel prices. I agree, if the boss is cutting back on flying, you might want to dust off your resume.
 

cptsesso

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Our only or should I say my only probem now is shopping around for better fuel prices. Before price was not a big factor in my flight planning. Now, I have to make a few more phone calls to find the better price.

We tend to tanker fuel a little more often now but only when it is worth taking a hit on the performance end of a trip.

No real change in trip frequency. Like someone above said, fuel will have to increase a lot more to really make a major difference.
 

Gulfstream 200

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Shop for fuel deals like a fiend, tanker when possible...you bet...

cut back on the flying due to fuel prices?? yeah... dust off that resume.

big difference.
 

Lead Sled

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Gulfstream 200 said:
Shop for fuel deals like a fiend, tanker when possible...you bet...
If any of you guys want a copy of an MS Excel file that I use to determine the viability of tankering fuel just send me a PM.

'Sled

Oops, my bad. Since I can't attach a file when I reply to your PMs, please send me an e-mail at ***Edited out E-Mail Address*** I'll get the file right out.
 
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Rabble

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ok, well I have to admit i'm jealous. Apparently you guys work for companies that are able to absorb 50% increases in the price of fuel over the last year without fear for your jobs.

That's impressive.

<-- green with envy
 

banned username 2

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Rabble said:
ok, well I have to admit i'm jealous. Apparently you guys work for companies that are able to absorb 50% increases in the price of fuel over the last year without fear for your jobs.

That's impressive.

<-- green with envy
I would say this is the case for most large corporations... When you work for a $30+ Billion company with a $20M flight department budget, if the budget goes to $21M or $22M due to rising fuel costs, they aren't going to change the way they operate, not when on some of these flights they are signing contracts for $100M, $200M or even $500M... They aren't going to risk missing these meetings while waiting in line for the TSA to inspect their shoes...

From the look of your profile, you fly for a Regional, and from the way you spell "recognise" with an S instead of a Z, I'd say you are in Europe. Either way, airlines are using their airplanes to directly make money, meaning the operating costs need to be directly absorded by the revenue brought in... Corporations don't directly make money with the airplane (we are an expense), but the indirect value is where they reap their benefits of the airplane... Big difference...
 

Rabble

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Nope, just crappy spelling and I never bothered to update my profile.

Light jet, fortune 500 company.
 

AA717driver

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Working for a F500 company doesn't insulate a flight dept. from being "bean-countered" to death. Lots of ground pounders are looking to feather their own nests by saving a buck. Flight depts. are usually high on the target list.TC
 

yfly

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Perhaps it is too early to predict the fuel cost increase fallout. Most companies use a charge back system as a way to "cover" direct operating costs. These companies will find that the charge backs for this year did not cover expenses. Next year the charge back amount will increase, so what will the customers (department heads who pay this charge back with their travel budget) do? If it becomes cost prohibitive to travel on the company jet flight time decreases and people and airplanes disappear. I hope this never happens, but unless your career is only 10 years old you have seen it before.

Another wild card is the economy as a whole. Corporate flight departments do not weather deep recessions well.

Lets all operate as efficiently as we can. Hope for the best but prepare for the worst.
 

satpak77

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Enron (a major energy company) was a major Fortune 500 company, #7 on the list, before it became the largest US company to file bankruptcy

FYI
 
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banned username 2

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satpak77 said:
Enron (a major energy company) was a major Fortune 500 company, #7 on the list, before it became the largest US company to file bankruptcy

FYI
Enron's flight department didn't go away because of high fuel costs, it went away because of massive fraud and the company filing BK and liquidating... Fuel could have cost $0.01 a gallon and it wouldn't have saved that department... Just a slight difference there...
 

LegacyDriver

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No flying cutbacks yet. Boss would lose more money by *NOT* flying. That being said, I negotiate for gas at every single place we go if we don't have contract fuel there. Even $0.25/gallon is significant considering how much we buy.

So far things seem okay. I am pulling the power back and staying as high as I can for as long as I can on repos. Four degree descents are the minimum now. Trying to save every nickel.
 
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BushwickBill

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Rabble said:
I was wondering if any corporatations have started reducing nonessential flying or cutting back on flying/parking aircraft as a result of the slowing economy and the dramatic increase in fuel prices.

I think we're starting to see this happen in some flight departments.
The boss wanted to know if there would be a fuel shortage and wanted to make sure the airport bought enough to prevent that. I think he was more concerned with availablitly than price.
 

h25b

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BushwickBill said:
The boss wanted to know if there would be a fuel shortage and wanted to make sure the airport bought enough to prevent that. I think he was more concerned with availablitly than price.
Mine called me to tell me not to get so wrapped up with tankering fuel and fuel cost as to compromise safety in any way. He just said to always have plenty on board... :)
 

aeronautic1

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Tankering

We have the extra capacity on most all missions (execpt on NAT or Transcontinental trips) and use the tankering profile that Lead Sled mentions. We also taxi on one engine. We are saving several hundred dollars a leg.That equates to about $41K per year. The only effort involved is making the phone calls to compile fuel price data (something for the F/O to do).
 

Cardinal

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Lead Sled, thanks for your fine contribution (as usual) to these boards. I might suggest that you pull down your email address, however. Aside from dolts like Guppykiller, bots cruise the web mining addresses from any and all web pages, and then sell the lists to spammers. Do yourself a favor - I learned this one the hard way.
 
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