oil at 90 dollars,what plans does AA have 100 and above?
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The Goose
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Tighten spending on necessities/safety and give the execs another bone-us.
Planesight
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I'm sure I'll get ripped for this, but I think the Fuel Smart program could help here.... unless everyone is resolved to turn that into a union issue too.
It doesn't make sense to me though, since bleeding extra fuel costs out of the company doesn't seem to add up to more money for contracts.
eolesen
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Fuel Smart would help, but that's just a drop in the bucket.
I would expect that any sustained high oil prices will start to weed out a few of the already weaker players.
YX is still on thin ice, as is F9. They might make it since they operate in places not traditionally impacted by LCC fares.
But Skybus? Toast. Spirit? Dunno... PA3? Let's home there's not a PA4.
I also think you're going to see a lot of one way flights to exotic places like ROW, MHV, VCV, IGM, MZJ and YUM. Pickle a few aircraft in case oil drops, and part out the rest.
Perhaps it's time to take a machete to the DFW schedule and drop down to 6 and 7 flights per day into most spoke markets, as opposed to 8 and 9. Assuming none of that traffic spills, that will drive load factors higher.
I would expect that any sustained high oil prices will start to weed out a few of the already weaker players.
YX is still on thin ice, as is F9. They might make it since they operate in places not traditionally impacted by LCC fares.
But Skybus? Toast. Spirit? Dunno... PA3? Let's home there's not a PA4.
I also think you're going to see a lot of one way flights to exotic places like ROW, MHV, VCV, IGM, MZJ and YUM. Pickle a few aircraft in case oil drops, and part out the rest.
Perhaps it's time to take a machete to the DFW schedule and drop down to 6 and 7 flights per day into most spoke markets, as opposed to 8 and 9. Assuming none of that traffic spills, that will drive load factors higher.
1 VF-1 2NV
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Imagine if prices were this high when the other carriers were in BK...hmmmmm?
CynicalResAgent
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This might be a stupid question but is rising price of oil is tied to the declining value of the dollar? So is the actual value of oil not really increasing that much just that the value of the dollar is falling in comparison? I always hated economics in college, my very least favorite class.
Don't leave out the Pilots they will need to take 10 dollar an hour cut to help out, plus fly more hours as well.
FrugalFlyerv2.0
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What about raising fares by $5-$10?
Is there an airline that is financially healthy enough and stupid enought to not match any fare increase(s)?
Is there an airline that is financially healthy enough and stupid enought to not match any fare increase(s)?
Now your just talking crazy 🙄
Of course they should raise fares and lower Executive pay as well, but that would make to much sense.
No, don't cut the pilots pay. The airplanes will not fly with out them. The airplanes can fly without the mechs. as that can be farm out and the f/a's are
only doing this for a way of getting free travel so they will be willing to take 5.00 less and the airplanes can still fly. NEVER, NEVER think about cutting the pilots pay. If anything, give them more.
only doing this for a way of getting free travel so they will be willing to take 5.00 less and the airplanes can still fly. NEVER, NEVER think about cutting the pilots pay. If anything, give them more.
Don't leave out the Pilots they will need to take 10 dollar an hour cut to help out, plus fly more hours as well.
Man you need to put the crack pipe down for a while, and get out from under the pilots lounge desk. :blink:
jimntx
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Possibly, but probably not. Even industry sources are saying that this rise in price is not tied to any shortages/supply issues. It all boils down to the price of petroleum products--from crude to gas at the pump--is based upon what the oil companies think you and I are willing to pay.
BoeingBoy
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Check this chart. The vertical axis is cents/gallon.
Keep in mind two things.....
1 - "crack spread" is something of a misnomer. Since it is the difference between the spot price of West Texas Intermediate crude (FOB Cushing, OK) and the average spot prices of jet fuel (FOB Gulf Coast, NY, and Los Angeles ports), it includes transportation costs as well as refining costs.
2 - WTI is one of a handful of light, sweet crude grades (low specific gravity and low sulfur content) so is one of the highest priced crudes. Refineries use a mixture of different crude grades, so the refinery cost of crude is less than the price of WTI. Therefore, the actual "crack spread" is greater than indicated. In Aug, the latest data available for refinery crude cost, refineries paid about 5 cents/gal less for crude than the WTI price.
Jim
