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
Is Your Air Traffic Control Person Real?
Have you ever been flying around in your private plane and the control tower or approach control has sent you on a vector or asked you to do s...(related: Aviation)
The Wright Brothers
Orville and Wilbur Wright were mere bicycle mechanics, yet they changed the history of mankind by inventing the first aircraft. It is amazing what one can do when you stop limiting your mind and go for it. There is probably no greater success story tha...(related: Aviation)
Entering Business Aviation, Part Iii: Training Options
Time for some training! So, you are not sure what type of training you will need or how it compares to the commercial side of aviation. For starters, there are some very big differences.Please be aware that the Federal Aviation Regulations (FARs) do not require that a flight attendant be assigned to an aircraft with fewer than 20 seats onboard. With that being said, it is a good idea -- regardless of federal regulations -- for the person who is in charge of the cabin area to have adequate training.There are quite a number of programs out there that train or claim to train business flight attendants. Some programs are excellent while others are awful. Caveat emptor -- let the buyer beware ...(related: Aviation)
Airbus To Build $600 Million Aircraft Manufacturing Plant In Us
Airbus has announced that it will build a $600 million aircraft manufacturing plant in Mobile Alabama. This is significant news and will open doors to ...(related: Aviation)
Cheap Airline Tickets! With Internet Access, The Skies The Limit For Great Deals
With easy access to the Internet, the convenience of finding cheap airline tickets is just a few clicks away. As more airline inventory becomes available directly to the public through the World Wide Web, cheap flights are being purchased in record numbers, and nearly everyone hunting for fantastic low cost airline tickets are finding better deals online, than offered at their local travel agency!If you happen to be wondering why your local travel agency seems to have a hard time competing with all the cheap tickets offered by online travel suppliers, well its a matter of volume. The airlines pass on great savings to the Internet based suppliers and in turn they forward these savings on to you for not going through a trav...(related: Aviation)
Travel Tips:tips For Safer Flying
Flying can be an adventure, but like everything else in life, there are small risks. Even though flying is the safest way to travel in this modern age, here are some tips to minimize any unfortunate, but unlikely event of a...(related: Aviation)
Mexico To Manufacture Aircraft
It appears Mexico with its 120 million population is considering getting into the lucrative aviation manufacturing sector. Of course this will mean that the...(related: Aviation)
Automated Following Jump System For Paratroopers, Afjs
There are many problems of safety in paratrooper drops. Many times night jumps are done or drops are made into the battlespace under low visibility. This is good and bad. It is good because the enemy cannot see you as easy to kill you, but bad because you cannot see anything either. At night it is often considered a blessing to make a jump into enemy territory because you do so under cover of darkness. Since modern day soldiers have GPS gear and wrist watches; I propose using them to help prevent entanglements, stealing of air flow to another soldiers canopy and burn-ins...(related: Aviation)
Learning To Fly
Flying is fun. I learned to fly myself when I was 10-years old as my dad was an Airline Pilot and former Naval Aviator. He also owned an aircraft and I caught the flying bug as they say at age ten. Flying is fun and gives you a completely different perspective of the world we live in. being able to look down on the world as if running a model train set. You can watch civilization move along the roads and highways. You see trains and shopping centers, cities and country side and all of a sudden the whole world in this dimension seems to make sense to you.The freedom to be above it all and look down helps you understand the world in a completely different way. When you are up flying around you see the rat race below and all the hustle and bustle as you zoom over it. Learning to fly is relatively easy, the tests you have to take...(related: Aviation)