Diesel-9 said:If there is any repeat of past cycles, as the majors get their costs in line as they are doing now, they willl be very competitive and thrive and the smaller carriers will feel the competition (crying predatory pricing). Haven't there been 50+ new carriers start up and disolve since deregulation? Mostly during one of these cycles. High oil will hurt them more as the majors have the large revenues to handle it at the same time the others are getting tired and finally asking to be paid for the all the hours and days they work for below par wages making someone else rich.
mannyaplus11 said:Just wondering if Jet Blue has a business plan that will carry them through if
a. Oil stays above 60$/Barrell
b. Lease payments increase as they are rumored to in three years.
I doubt $60+ was in any airline's biz plan 5 years ago.
Heck, 10 years ago who even heard of an RJ.
At some point the fares have to rise. If customers want to ride in a machine that burns fuel, they must be willing to pay for said fuel.
Redmeat said:Exactly right, pay for said fuel. But not pay for said crew.
Smoking Man said:DW
Is on to something. Oil a 60/70 BBL is not good for anyone, and I doubt that anyone planned for it. The ability to change rapidly for the short term would be key to survival for any airline. How does the old joke go something like, you and your buddies are out camping and all of the sudden a bear is comming after you all. You may not be able to out run the bear, but you don't have to do that you just have to be faster that you slowest buddy.
People give us crap about cleaning the airplanes, the pay rates on the 190, etc. Well it looks as if the price of fuel is the bear, and I can name a few that I am pretty sure we can out run.