Man you need to put the crack pipe down for a while, and get out from under the pilots lounge desk. :blink:
oil at 90 dollars,what plans does AA have 100 and above?
- Thread starter FA Mikey
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TWU-GOTTA-GO
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The "crack spread" is all relative to the union representing you. With the twu, history has proven to expect a very wide "crack spread."
Dont call me Shirley
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What the falling dollar does do is lessen the impact of increased oil prices for everyone else. Since crude is priced in USD, it takes fewer Euros, Pounds, Yen, Drachmas, etc to buy oil than it would at higher exchange rates. Now, if OPEC decides to price the stuff in Euros, the fun would really start.
Hey, if the greenback keeps dropping, Canadians are to start buying their prescription drugs in the US!!!
PRINCESS KIDAGAKASH
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Pilot's are the Dinosaur of the Airline industry. Total automation is coming and it's coming faster than you think SWdriver. Better shut your mouth on who you would throw under the bus, because it may be you with the tire threads all over your body.
NewHampshire Black Bears
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Fact # 1,
Every single one of us, knows that there is TOO MUCH capacity in the system.
Fact # 2,
When it comes to M&A's, everyone is "All talk, and NO action"
Therefore, I suggest/hope that Jet-A goes into the ($$) stratosphere ($$)........to (ONCE and for ALL), force this Industry into it's LONG overdue consolidation.
I'm really starting to believe, that "this" is a GOOD thing !
Every single one of us, knows that there is TOO MUCH capacity in the system.
Fact # 2,
When it comes to M&A's, everyone is "All talk, and NO action"
Therefore, I suggest/hope that Jet-A goes into the ($$) stratosphere ($$)........to (ONCE and for ALL), force this Industry into it's LONG overdue consolidation.
I'm really starting to believe, that "this" is a GOOD thing !
AdAstraPerAspera
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You're right, which is why OPEC isn't in a hurry to boost production... keeping a tight reign on the supply keeps the demand artificially higher, and helps them make up for the fact that the value is more or less flat with the dollar...
...I think! 😉
You're right; that's exactly why cartels form: to control the supply and thus, the price.
A
American Air Surf
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This link might help you. It is not necessarly, that Oil costs more, per say, it is the dollar buys less, and has declined in value since the creation of the Federal Reserve System in 1913, not to say that we are also in Peak Oil, and big trouble coming down the road, Look up Hubberts Peak, or Peak Oil in a google search, or get the book by Matthew Simmons "Twilight in the Desert"
http://www.financialsense.com/fsu/editoria.../2007/1020.html
NewHampshire Black Bears
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With what you've correctly said about oil...FWAAA, plus what others here have mentioned about the sinking of the dollar, the real possibility of a recession, the steady decline of AA domestic mainline flying, the fact that AA ..WILL have to "come up" with something $$$$ with the 3 contracts,...ALL of this points Very clearly to what the GREAT visionary...(uncle) Bobby CRANDALL foretold of, about AA becoming an International/Hub to HUB/Transcon Carrier ONLY (meaning LARGE furloughs IMHO) !!!
It NEVER ceases to Amaze me, about how much CRANDALL had his finger on the pulse of this wacky Industry.
??
Chuck Schalk
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At the 2003 negotiations, Don carty told us that if oil hit 60 dollars a barrel AA would have to declare Bankruptcy! How come so quiet with oil almost hitting 90 dollars?
Well Chucak, that was given conditions at the time. Since then, AA/AMR has tightened the costs controls even more and learned what valve work and don't work. Unfortunately, it seems that it won't wring players out very fast. Since NW/UA/DL have all just finished bankruptcy and are making record profits, it will take a while for them to be hurt. This may actually benefit AA. If they declare now and get their costs in line within this environment as opposed to $70/barrell environment. What may happen if AA did file is an almost definite spin-off of AAdvantage & overhaul. Because it's being thought of by non-bankrupt carriers, creditors will force the monetezation of those assetts most likely...I consider this a huge negative.
As for the value of the dollar affecting oil prices, what it may do is force the elimination of certain aircraft and thus spokes/flights from certain markets. I like the idea of going to less flights mentioned earlier. Unfortunately, DFW is a tough hub to do that with as every market worth a darn has a tough turn time to do that with.
As for the value of the dollar affecting oil prices, what it may do is force the elimination of certain aircraft and thus spokes/flights from certain markets. I like the idea of going to less flights mentioned earlier. Unfortunately, DFW is a tough hub to do that with as every market worth a darn has a tough turn time to do that with.
T
The Goose
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Hey Chuckie - are you saying that Carty lied to us?
I learned long ago that anything wearing a tie in a business environment is a professional liar and the tie's sole function is to keep the foreskin inside the shirt.
Ed Norton
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You have a very valid point. Its the same reason the price everything is going up, except our wages of course. In the past the dollar would be devalued to increase exports. Now we have nothing to export, well... maybe Big Macs.
The plunging dollar is the same reason the stock market is as high as it is, otherwise it would be around 7000- 8000.
Truth be known there is plenty of oil to go around. Its more profitable to create a scarcity by blaming environmentalists for not having more refineries or not being able to drill in ANWAR. Speaking of Alaska, the bulk of that oil goes to Japan and China. The whole "peak oil" theory (Peak Oil) which was conjured up by Royal Dutch Shell is a scam to steal our wealth and control us. :down:
CynicalResAgent
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It's just that this is the first time I can ever remember the dollar being this low to say another currency like the Loonie. I think the declining dollar is bad news for us worker bees.
Others have more training in this type of thing, but, a falling dollar boosts American Exports which drives jobs while reducing our imbalance of payments for goods and services purchased abroad: it becomes relatively cheaper for foreign airlines to outsource their maintenance to American Airlines and our overhaul bases.
It also drives purchases by US based companies of US products versus buying same from foreign firms also driving increases in US wages and production by US firms. For several years, the US has complained that artificial devaluation of Chinese imports has hurt American producers of the same type.
The exposure to the subprime market, and the housing woes, of US based financial firms led to an explosive dumping of liquidity into the financial system by the Federal Reserve: more dollars, less value.
The question is why Washington has allowed this explosion in the money supply on behalf of the US financial industry when the response was raising the typical interest rates for mortgages that infusion was designed to calm. I guess Congress and the Fed wanted to save US Financial firms while stiffing the US Citizens. Given the rise in the money supply versus the increase in mortgage interest, I can only assume that the Fed saw a balancing between the bite homeowners could afford versus devaluation that would drive foreigners from investing in dollar valuated investments.
