Aviation Information

Airline Fuel Costs Mount


The airlines are huge users of fuel. Fuel costs are higher than even the cost of the aircraft. Surcharges are up to the highest point in the history of the airlines along with the fuel costs at an all time record cost. Airline tickets and airlines live and die on their ability to number one fill up planes and number two, manage their fuel costs. Discount Airlines have been able to keep flights full in order to order to cover costs and keep prices low, but are hurt in quarterly earnings every time fuel prices increase.

When fuel prices stay high, you often see massive downward spirals and negative sector rotations in Airline Stocks. Again it is all about the cost and flow of fuel. It is of interest when we hear talk of our National Debt and how important that is. "A Nation is not in danger of financial disaster merely because it owes itself money." The flow of fuel is several times more important than that, because with proper flow and economies of scale, every thing works better and every one wins. Consumers have lower prices and more choices; governments have greater tax revenues due to more commerce and more jobs paying into the system; industry has higher profits and more money to expand; the stock market moves upward provided greater benefits for those who bet on a strong America and therefore greater investment in new companies which provide innovation and research and development to improve the flow of every thing we know. Speaking of the benefits of the flow of fuel to government in the tax revenues, just think of all the fuel the government uses at all levels? Incredible amounts at every level; so incredible that they along with private enterprise spend millions of dollars trying to figure out more efficient methods. The military uses so much fuel it has it's own reserves and oil fields and contracted out refineries. It has about enough supply for the entire country for 60-90 days depending on our conservation levels in a crisis situation. Fighting a war takes a tremendous amount of fuel. The modern Aircraft carriers use nuclear power, like the submarines, but the rest of the world's greatest arsenal uses fuel of various types. And they are always testing different fuels to increase performance in different situations.

These reserves have been used when OPEC plays hardball creating fuel prices above our ability to operate our industries and businesses and keep America employed and the wheels of commerce turning. Opening up the floodgate of supply, lowers the prices and puts the cartel in check. If not certain businesses become un-viable when fuel prices go too high. Think of the military aviation, jets, helicopters, UAVs, AWACs, bombers and even flying gas stations in the sky for aerial re-fueling. It is like running several airlines non-stop 24/7. Generally Airlines too are a 24-hour business. The airline industry is under extreme pressure now.

If they keep raising their fees to passengers then the passenger per plane ratios drop off, meaning flight are unprofitable. If they do not raise the price then they lose money. It is a no win situation and they need some fuel price stabilization, yet an already hampered industry is facing additional crisis from fuel costs. We have seen already four major airlines file bankruptcy and two out of business, two more are facing bankruptcy and several are considered bad risks from ever emerging from their bankruptcies. The flow and costs of fuel are critical to the airline industry and the future of air travel in the World.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs


MORE RESOURCES:

FAA Ambassador Jamail Larkins Opens Doors to Aviation Career ...
MarketWatch - 2 hours ago
DALLAS, Dec 05, 2008 (BUSINESS WIRE) -- With 25 percent of all aviation employees eligible to retire this year, according to a study by Aviation Week ...


Frontier Airlines Reports Preliminary Traffic for November 2008
MarketWatch - 16 hours ago
today announced preliminary traffic results for November 2008 for both Frontier's mainline operation as well as its wholly- owned subsidiary, Lynx Aviation. ...
Southwest’s November traffic falls Bizjournals.com
Airline stocks jump as oil prices fall for fifth day MarketWatch
all 18 news articles


Vertical Magazine (press release)

Van Nuys Airport's 80th Anniversary Event Honors Life-Saving ...
MarketWatch - 12 hours ago
More than 200 local community, business, civic and aviation industry leaders gathered to pay tribute to medical flight teams from the Los Angeles Fire ...
Van Nuys Airport's 80th Anniversary Event Honors Life-Saving ... International Business Times
all 12 news articles


The Spokesman Review

Popular alternative school told to refocus or move out
Seattle Times, United States - 8 hours ago
King County's top transportation official has told the school known as Opportunity Skyway that it must return to its aviation-related roots or move out of ...
School at Boeing Field asked to depart Seattle Post Intelligencer
all 9 news articles


Telegraph.co.uk

Indian airports on high alert after fresh warning
Daily Times, Pakistan - 15 hours ago
The Civil Aviation Bureau is believed to have alerted the three airports following reports that several suspected terrorists had infiltrated the country to ...
Indian TV channels told not to replay gory Mumbai scenes Pakistan Dawn
India Tightens Security at Airports After Threat (Update1) Bloomberg
India airports and coast on high alert Xinhua
Times of India - Economic Times
all 421 news articles


Sun Country gets OK for loan from Petters unit
Bizjournals.com, NC - 21 hours ago
The line of credit is coming from Elite Landings, a company that is a subsidiary of Petters Aviation, a Minnetonka-based company that also is working ...
Petters Subsidiary Given Court OK To Bail Out Sun Country Aero-News Network
Sun Country Airlines Receives Financing Commitment Approval ... MarketWatch
Sun Country Airlines Is Cleared to Tap Funds Wall Street Journal
Minneapolis Star Tribune - Pioneer Press
all 46 news articles


Wings Financial FCU Assets Exceed $2 Billion
MarketWatch - 2 hours ago
Because of this, we have attracted members from more than 35 airlines, from aviation vendors and from government agencies regulating air transportation. ...


Aviation should be part of economic stimulus package
AOPA Pilot - 22 hours ago
AOPA is making the case that aviation should not be forgotten in this effort. “General aviation is vital to this nation’s economic prosperity. ...
Obama's Transportation Secretary Must Be A Visionary Wired News
all 3 news articles


D/FW Airport unveils runway system
Bizjournals.com, NC - 1 hour ago
The Federal Aviation Administration provided 75 percent of the funding to build the first quadrant, which took $67 million to complete.
Airport ideas may fly into more opposition Indianapolis Star
all 8 news articles


MedAire Pledges Support for Arab Air Carriers Organization Members
MarketWatch - 20 hours ago
An aviation specialty company of International SOS, MedAire is the leading provider of remote medical solutions for 80 of the world's commercial airlines. ...

Aviation - Google News

home | site map
© 2006