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Cutting Back Flying Due to Fuel???

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Rabble

Flightinfo.com Babysitter
Joined
Feb 4, 2005
Posts
56
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.
 
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.
 
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?
 
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
 
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.
 
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.
 
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.
 
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.
 
Last edited by a moderator:
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
 
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...
 

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