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

In The News:

Girls in Aviation event returns in-person  Channel3000.com - WISC-TV3
Aviation effort beginning to take off  Northwest Arkansas Democrat-Gazette

India Air Traffic Issues to Come

As India increases its economic growth the population is taking... Read More

Young Men Trying to Imitate the 9-11 Scenario, Part I

Why did the young man near Tampa, FL fly a... Read More

Entering Business Aviation, Part IV: Crafting a Resume

Writing a résumé can be one of the most daunting... Read More

Inflatable Aircraft Wing Camber Modification

Every aircraft is a compromise. It is either built to... Read More

Budget Airlines ? Cheap Airfares for Flights around Europe can Reduce Your Vacation Costs

Here's a good tip to help cut the cost of... Read More

Flying Blimp Walrus Could Have Assisted in Evacuations

What is a Walrus Super Blimp? It is a giant... Read More

Flying VS Driving

When fuel costs are so high, people favor flying to... Read More

Young Men Trying to Imitate the 9-11 Scenario, Part IV

In conclusion of this young man who crashed a single... Read More

Making a Mechanical Manta with Material Memory Manufacturing Methods

I propose building a mechanical manta ray as a Underwater... Read More

Lockheed Loitering Missile Expandable Wing Concept

Smart Missiles are expensive, but effective. Efficiency in the the... Read More

Helicopters - The Multi Utility Machines

The vertical lift technology of helicopters has far more utilitarian... Read More

Entering Business Aviation, Part I: Types of Aircraft

The jets that people fly in corporate aviation are usually... Read More

Aerodynamic Inflatable Wing Gates for STOL

Low speed flight characteristic are crucial to safety. Those aircraft... Read More

Airport Travel Tips: Reducing Waiting Times

Key Travel TipsFollowing these tips will help you reduce your... Read More

New Airbus A-380 Beats Out 747

The A-380 has beat out the Boeing 747 as a... Read More

Airline Security; Stewardesses The Last Line Of Defense!

Introduction:It might come as a chock to many people, including... Read More

Do Jet Lag Diets Work?

Anti jet lag diets have been around for some time... Read More

Cracking Aircraft Windows with Directed Sound Waves

Today our modern military scientists have found many uses for... Read More

Overcoming Jet Lag

Jet lag can be one of the worst, and certainly... Read More

Entering Business Aviation, Part II: Pay Rates for Flight Attendants

Pay. You know that aviation pays better than commercial, in... Read More

Learning to Fly

Flying is fun. I learned to fly myself when I... Read More

5 Tips for Stress Free Long Haul Flights

The world is becoming smaller by the day. Flying long... Read More

Automated Satellite Following System for UAV Swarms

Much work is being done and the USAF has implemented... Read More

Business Aviation Networking Notes

The process of finding out about a job, getting interviewed,... Read More

Sex in a Cessna, Part I

If you have never had sex in a Cessna or... Read More