NUair From Malaysia, joined Jun 2000, 1181 posts, RR: 0 Posted (14 years 10 months 1 week 4 days 9 hours ago) and read 1420 times:
With Shell/BP, Texaco, Exxon/Mobile all announcing the highest profits on record nearly doubling previous records it makes you wonder how much of the recent fuel "crisis" was the result of oil companies rather then OPEC members. And who is suffering at the costs of their profits? Of course we all added to these profits at the pump. But also in ticket fares and airline cuts in other services. It seems with recent financial earnings by the majors all of whom saw incredible increases on oil expenses that something should be done to control the oil industry. I think that the airlines need to stop taking a back seat when it comes to oil pricing (considering it takes close to 54,000 gallons to refuel a 744) think of the improvements to in flight services, route expansion, equipment upgrades, etc.. that were sacrificed to help Shell's bottom line.
food for thought.
"How Many Assholes we got on this ship?" - Lord Helmet
Goingboeing From United States of America, joined Dec 1999, 4875 posts, RR: 15
Reply 3, posted (14 years 10 months 1 week 4 days 4 hours ago) and read 1396 times:
You have to ask: Who needs the other more? Oil companies have something that the airlines don't just want, they have what something that they REQUIRE to operate. Supply and demand. The only way that the airlines can impact the demand is to reduce flights, but doing that would hurt the airline financially. So, the airlines pay the price be it hedging or paying current prices.
I suppose that they COULD buy from some not-so-major oil company, but I'd feel a little uncomfortable watching a fuel truck with "Bud's Oil Company" on the side fueling a plane I was about to climb aboard.