Articles. News. Information.

Category of Information, News & Articles


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:

Boston Globe

Flying on Vegetables
New York Times, United States - 10 hours ago
Because fuel quality has such importance to safety, some energy experts thought aviation would be the last to switch. “For 40 years we had the philosophy ...
Biofuels gain momentum in aviation industry Washington Energy Services
Air Algae: US Biofuel Flight Relies on Weeds and Pond Scum Scientific American
Biofuels are used in test of airliner The Star-Ledger - NJ.com
Cincinnati.com - Houston Chronicle
all 232 news articles


New Zealand Herald

American responds to union’s critique
Bizjournals.com, NC - 12 hours ago
In the suit, American and multiple carriers are asking a federal court to review the Federal Aviation Administration’s recent initiative for establishing ...
Aerospace Notebook: New attention paid to aircrew fatigue Seattle Post Intelligencer
Pilots Allege American’s Crew rest Stance “Unconscionable” Cheapflights.com
AA pilots don't like AA's lawsuit over crew rest Dallas Morning News
Bloomberg - Reuters
all 203 news articles


Phillips 66 Aviation Adds To Its FBO Network
Aero-News Network, FL - 1 hour ago
Phillips 66 Aviation rang in 2009 with a number of Midwestern fixed base operators now offering its branded services. Butterfly Aviation in Goodland, ...
Odyssey Aviation, a New Independent Network of FBOs, Contracts for ... PR Newswire (press release)
all 12 news articles


Aviation Week

Graves finds aviation rule proposal excessive
St. Joseph News-Press, MO - 14 hours ago
by Ken Newton The National Business Aviation Association believes proposed security guidelines would prove "unduly burdensome" on private fliers. Rep. ...
Air Security Could Involve Private Jets New York Times
Homeland Security proposes to tighten Private Aviation Security Private Jet Daily
TSA and St. Lucia Partner to Enhance Aviation Security Aero-News Network
AOPA Pilot - AVweb
all 31 news articles


Great Lakes Aviation announces Montana flights
Montana's News Station, MT - 5 hours ago
Great Lakes Aviation has announced they will begin operating flights on February 1, 2009, between Billings and 5 Montana cities that have been without ...
Air service returning to four more Montana cities Billings Gazette
Air service returns to Havre, Glasgow, Wolf Point, Glendive Great Falls Tribune
Great Lakes announces service to 4 more cities LocalNews8.com
Sidney Herald Leader - Montana's News Station
all 18 news articles


Albany Int'l Airport's management co. acquired
Bizjournals.com, NC - 10 hours ago
Aviation Facilities Co. Inc., based in McLean, Va., has completed the acquisition of the trade name and assets of AvPORTS, which managed seven US airports, ...
AFCO buys AvPORTS, contract operator of Stewart operations ... Mid-Hudson News
Some change, and stability, at airport Albany Times Union
Virginia company buys Stewart International Airport day-to-day ... Poughkeepsie Journal
Bizjournals.com
all 11 news articles


Market Wire (press release)

Burtis Group Formed by Former Eclipse Aviation Senior VP
MSNBC - Jan 6, 2009
"Don is one of the most talented critical thinkers I have ever worked with," said Matt Brown, former Product Marketing Manager at Eclipse Aviation. ...
Burtis Group Formed by Former Eclipse Aviation Senior VP International Business Times
all 6 news articles


The Money Times

Like this story? Share it with Yahoo! Buzz
USA Today - 7 hours ago
The paper notes that back in October, one aviation consulting group -– the Boyd Group run by aviation consultant Mike Boyd -– had predicted US airlines ...
Economy replaces fuel as airline concern United Press International
all 7 news articles


Finland-based company buys Aviation Systems Maintenance
Bizjournals.com, NC - Jan 6, 2009
Aviation Systems Maintenance is based in Overland Park and has nine employees, Kevin Lindsey, president of The DVS Group, said Tuesday. ...


Bilateral aviation pact with US likely
Economic Times, India - 11 hours ago
NEW DELHI: India may sign a bilateral aviation safety agreement (Basa) with the US next year to enable certification of each other’s products and technology ...
Foreign carriers may soon buy stake in Indian airlines Thaindian.com
India, US likely to ink aviation safety pact next year Economic Times
Govt may allow FDI in aviation sector Economic Times
Economic Times
all 18 news articles

Aviation - Google News

Home | Sitemap
© 2006 eInfoJunction.com Homepage | Web Directory | Article Directory