Speculator's mocking the airlines

[Dan Roman]

Speaking for myself as a fractional pilot, I came from the airlines and have no desire to return. I still have a lot of friends on the 121 side of the industry (including one who is about to be furloughed) and do not wish anyone out of a job.

My problem is with airline managements looking for government welfare to keep their failing business models afloat. They play right into the Democratic hands in jumping on the band wagon to blame speculators when there is no hard evidence that speculation plays a significant role. First, it was the evil oil companies and their high profits. Now it is speculators. Next it will be something else.

They will never get around to blaming the inability to drill our own oil, which forces us to rely on foreign (for the most part) dictatorships for two reasons:

1. They like high oil prices because it reduces consumption, which is their goal based on a global warming worldview

2. They are, for the most part, anti-capitalist and anti-profit. By demonizing the market, they are able to increase regulation and maybe, eventually, nationalize the oil companies, something some Democrats are already talking about.

Well I don't buy limiting speculators as being anti-capitalistic. Capitalism should be building and producing and earning a profit that trickles down through the economy for the benefit of all.

I'll paraphrase a comment I heard attributed to Jimmy Buffet (It was a long time ago so forgive me if it's not exactly right) He described someone as republican, but " 'he was the good kind that was pro business not the I've got mine so screw you kind of republican' "
You guys bashing the airlines seem to me as coming across as the "screw you guys we've got plenty of money and we can waste all the fuel we want "
I got news for you, if fuel stays up a lot of corporations will be in just as big as or more trouble than the airlines.

As far as the airlines asking for govt help. The airline industry has contributed billions more to the economy than the corp sector and paid for a lot more toward those airports you use, shouldn't you be at least paying just as much for landing fees as we do? After all you guys can afford to fly around at any speed you want no matter what the cost, you could at least contibute a little more to operating the airports when you land at a major airport. I mean why should an airplane with a couple people on board not pay extra for holding up a couple hundred passengers on an airliner?

 

[clippyrip]

>>>>>>>>>>>>>>>>

 

[Poahi]

Capitalism should be building and producing and earning a profit that trickles down through the economy for the benefit of all.

Okay, but you're going to have to do something with the lawyers.

 

[Diesel]

odd this string became a corporate vs. airline flying arguement. The couple corporate guys on here seem to be pretty bitter against the airlines. Could it have anything to do with the fact that there are plenty of corporate pilots that WANTED to be airline pilots but I've never heard of an airline pilot that wished he could have gotten a corporate job? I mean what' s with the corporate guys bashing the airlines, how about to each his own? You guys come across as "I hope the airlines suffer because I have a corporate job!" The worst is the self obsorbed little tool box boasting about "flying around wasting fuel because speed and comfort are our business"

Yup we do max speed, never long range cruise unless we're trying to go non stop. Speed and comfort is our buisness. Poor customer service and screwing the workforce and passengers is what the airlines do best.

Please get the term right though. Corp is wayyy different than fractional.

 

[blueridge71]

As far as the airlines asking for govt help. The airline industry has contributed billions more to the economy than the corp sector and paid for a lot more toward those airports you use, shouldn't you be at least paying just as much for landing fees as we do? After all you guys can afford to fly around at any speed you want no matter what the cost, you could at least contibute a little more to operating the airports when you land at a major airport. I mean why should an airplane with a couple people on board not pay extra for holding up a couple hundred passengers on an airliner?

The problem is, as somebody said on another thread, there are just too many airlines and if one or two disappeared, it would probably be a good thing for the rest. I hate to wish ill for anyone, but it seems obvious that there is so much overcapacity that they can't charge fares that will pay the bills. That is the root of the problem. Government subsidies will just prolong the agony and make the situation take longer to stabilize.

Frankly, we usually have to wait on the 121 traffic. And you should see the taxes and fees that go onto a part 91 or 135 bill. We pay plenty.

 

[Voice Of Reason]

deja vu

Why has the price of gas jumped 18 cents a gallon?

Peter Cohan
Oct 26th 2009 at 11:20AM
Text SizeAAA

Filed under: Energy, Goldman Sachs


Why are gasoline prices going up so much? I suppose I should be happy I am paying only $2.69 a gallon for mid-grade, instead of the $4.10 I paid in 2008. But it seems like the economy is not booming and oil supply exceeds demand, which would suggest oil prices -- and hence gasoline prices -- should be dropping. But they're not. And the reason is the same as last year -- speculators.
How much are gasoline prices up? CNN reports they popped 18 cents in the last two weeks. Self-serve regular was $2.655 as of October 23 -- up 17.82 cents since the last Lundberg Survey on October 9. Naturally, there are wide variations in price around the country -- CNN notes that the price is $2.67 in the Midwest; $2.62 on the East Coast; $2.52 for the Gulf Coast; $2.51 in the Rockies. Anchorage, Alaska, at $3.25 per gallon, has the highest price and Tucson, Arizona, the lowest at $2.24.
The fundamentals of supply and demand suggest that oil prices should be falling. On the exploration front, BusinessWeek reports that exploration is down 27.8 percent from 2008 with 309 rigs actively drilling, compared with 428 last year. Overseas there are eight percent fewer rigs drilling than there were in 2008 -- 764, down from 831.
BusinessWeek also reveals that crude inventories are bulging. U.S. crude inventories, at 339 million barrels, are up 27.7 from last year and at 725 million barrels, the strategic petroleum reserve stands at a 27-year record. There is no where to store the crude on land, so 125 million barrels' worth is sitting on tankers -- normally that amount is close to zero.


Moreover, demand is down so much that refineries are operating with significant excess capacity. BusinessWeek reports that at 80 percent, U.S. refineries are operating at their lowest rates in two decades.
But despite supply exceeding demand, oil prices are rising -- up 152 percent since the $32 a barrel it traded at in January to $80.50 on Friday, reports BusinessWeek.
So why are oil and gasoline prices rising? Speculators. As I posted last year, 81 percent of oil trading volume is handled by Wall Street speculators -- like Goldman Sachs Group (GS), which will pay $23 billion in bonuses after its near-death experience 13 months ago.
Speculators borrow money to sell the dollar short and buy futures in commodities such as oil. Since oil is traded in dollars, the first bet almost ensures that the second bet will win. Fundamentals of supply and demand are overwhelmed by the role of the speculators.
So 175,000 Wall Streeters keep getting a return on their $5 billion investment in Washington lobbying fees and campaign contributions over the last decade.
The other 99.943 percent of Americans in a deep recession are out of luck when it comes to saving money on gasoline.
Peter Cohan is a management consultant, Babson professor and author of nine books, including Capital Rising (due in June 2010). Follow him on Twitter. He has no financial interest in the securities mentioned.

(end article)
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for more related info:
www.stopoilspeculationnow.com

 

[Smarta$$]

True and disgusting. This country is run by corporations and the investment class. It will be the downfall of this country's greatness.

 

[BoilerUP]

Odds are pretty strong that most pilots are contributing to the run on commodities (gold, silver and oil) as a hedge against the falling dollar via their 401k and IRA retirement mutual fund managers doing their job to provide you maximum returns...

 

[JoeMerchant]

Odds are pretty strong that most pilots are contributing to the run on commodities (gold, silver and oil) as a hedge against the falling dollar via their 401k and IRA retirement mutual fund managers doing their job to provide you maximum returns...

BINGO...The dollar is going to be worth less than a roll of Charmin toilet paper soon...The "investor class" is us! We got "change" and I don't think we are going to like it....

 

[Flopgut]

Tax NJA and the other fractionals appropriately and we'll see who the customers choose to ride on. I think it's coming. Wouldn't want to be on the bottom half of those seniority lists.