What, me worry? ($50 oil)

[vc10]

So far as I can tell, there's not one thread here on $50 oil and what it's going to do to this business if it persists through 2005.

You'd figure someone would be interested.

 

[46Driver]

I was thinking the same thing a couple of days ago when I posted this:

http://forums.flightinfo.com/showthread.php?t=40797

 

[FlyDouglasJets]

So far as I can tell, there's not one thread here on $50 oil and what it's going to do to this business if it persists through 2005.

You'd figure someone would be interested.

Nope, not good at all, we will all be riding bicycles around pretty soon.

Last year JET-A was around $.80 for the majors, it's around $1.40 now.

Consider that the airlines 2nd highest expense, has increased nearly 100%, can you imagine where the default is going to come from??

We will all be working for tips soon.

 

[General Lee]

You have gotta add a fuel surcharge, especially on all routes not covered by LCCs, and then a modest one on those, since Southwest can only fly a certain number of people per day.


Bye Bye--General Lee

 

[ATA717Pilot]

You have gotta add a fuel surcharge, especially on all routes not covered by LCCs, and then a modest one on those, since Southwest can only fly a certain number of people per day.
Bye Bye--General Lee

Sure...great idea...didn't NWA do this a few weeks back only to back off a few days later when noone else jumped on board?

What other industry sells their product for less than it costs to produce it?

It's time for all the airlines in this country to grow some stones and institute an across the board fuel surcharge. Hell....you don't see these pax not gassing up their monster SUV's because it suddenly costs $5 more.

 

[46Driver]

The alternative is that the stronger companies will utilize this to drive the weaker companies out of business sooner and then reap the benefits of decreased competition. If your fuel is hedged and you are paying a flat rate (say $35 a barrel), then you have no incentive to raise fares.

 

[jarhead]

Oil closed at above $53 today. Kind of spooky. We're going to have a scenerio where the people in Saudia Arabia are all driving big heavy Mercedes-Benz cars, and in the good old USA, we will be the ones driving camels around and picking up their dung for use to heat our tee-pee with in the winter.

A $35 hedge was a pretty good move when it was available. If it goes to $60.00 a barrel, maybe some $54 contracts are appropriate?

 

[Palerider957]

Oil closed at above $53 today. Kind of spooky. We're going to have a scenerio where the people in Saudia Arabia are all driving big heavy Mercedes-Benz cars, and in the good old USA, we will be the ones driving camels around and picking up their dung for use to heat our tee-pee with in the winter.

A $35 hedge was a pretty good move when it was available. If it goes to $60.00 a barrel, maybe some $54 contracts are appropriate?

You have to have credit to hedge, and in the case of DAL, USAIR, and United, I can't imagine they are getting anything but the highest cash price from the suppliers.

 

[coolyokeluke]

What was the quote about the weather, "everyone talks about the weather but nobody does anything about it."

Perhaps that's why there isn't more discussion on this vital subject. There's not so much we can do about it. Besides conservation of course.

 

[AA717driver]

Jarhead--As long as we have U.S. Marines, we'll always have oil! TC