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:

Aviation Week

TSA catches heat over private aviation proposals
Atlanta Journal Constitution,  USA - 7 hours ago
About 200 pilots, directors of corporate flight departments and representatives of the business aviation community from across the Southeast packed a ...
Air Security Could Involve Private Jets New York Times
Graves finds aviation rule proposal excessive St. Joseph News-Press
TSA rules could hurt business jets The Wichita Eagle
Private Jet Daily - Aero-News Network
all 34 news articles


BBC News

Aviation industry strives to find alternative fuels
SmartBrief, DC - 6 hours ago
The aviation industry wants to find an alternative to jet fuel after it got burned last summer. Continental Airlines is testing fuel made from the tropical ...
Jet Biofuel May Be Commercially Viable Soon, Point Carbon Says Bloomberg
Flying on Vegetables New York Times
Biofuels gain momentum in aviation industry Washington Energy Services
Los Angeles Times - Aero-News Network
all 258 news articles


China gives more support for sagging aviation sector
Reuters - 11 minutes ago
SHANGHAI, Jan 9 (Reuters) - China has again sought to lift the country's aviation industry, hit hard by the global financial crisis, with the government ...


Aviation Industry Corp of China obtains 176 bln yuan credit lines ...
Forbes, NY - 20 minutes ago
BEIJING (XFN-ASIA) - The newly-established Aviation Industry Corp of China signed agreements yesterday for credit lines totaling 176 bln yuan from 10 ...


Great Lakes Aviation December load factor down 8 pts
RTT News, NY - 18 hours ago
(RTTNews) - Great Lakes Aviation, Ltd. (GLUX.OB: News ) reported preliminary passenger traffic results for the month of December 2008 and year ending ...
Great Lakes Aviation announces Montana flights Montana's News Station
Great Lakes Aviation releases December traffic results Trading Markets (press release)
Air service returning to four more Montana cities Billings Gazette
Great Falls Tribune - The Missoulian
all 39 news articles


Art and aviation
Reno News & Review, NV - 14 hours ago
By Brad Bynum Count Guido Roberto Deiro was a pilot and businessman “heavily involved with aviation matters in Nevada,” when he met Michael Heizer, ...


Aviation firm buys airport manager
Poughkeepsie Journal, NY - 16 hours ago
Aviation Facilities Company, Inc. announced Wednesday it purchased AvPORTS, which manages day-to-day operations at seven US airports, including Stewart ...
Albany Int'l Airport's management co. acquired Bizjournals.com
AFCO buys out AvPORTS, contract operator of Stewart operations ... Mid-Hudson News
Some change, and stability, at airport: New owner agrees to ... Trading Markets (press release)
Branson Courier - Bizjournals.com
all 16 news articles


Army aviation officials seek to improve communications
FCW.com, VA - 6 hours ago
By Doug Beizer Army aviation commanders are developing ways to use technology to share up-to-date information about the problems faced by deployed troops, ...


Are Aviation Biofuels Are More Hype Than Hope?
Wired News - 4 hours ago
By Dave Demerjian January 08, 2009 | 3:00:00 PMCategories: Biofuel The commercial aviation industry, hammered by rising fuel costs and increased pressure to ...
Aviation biofuels: hope or hype? Crikey
all 2 news articles


NBC4i.com

Southwest: Pilot on paid leave pending alcohol investigation
USA Today - 5 hours ago
"The Federal Aviation Administration is investigating an incident Tuesday at Port Columbus in which two passengers accused a Southwest Airlines pilot of ...
Travelers say they smelled alcohol, confronted pilot Columbus Dispatch
Southwest pilot called in sick after passengers accused him of ... Gadling
Southwest Puts Suspected Intoxicated Pilot On Leave Aero-News Network
NBC4i.com
all 5 news articles

Aviation - Google News

home | index |site map
© 2006