The basic premise of the article is that the aviation industry is facing trauma with ever increasing oil prices (this article was written at the highpoint of rising oil prices in 2008).
Quote: Early signs of an aviation apocalypse are already upon us. As oil prices flirt with $130 per barrel and the dollar struggles, airlines are paying nearly 80 percent more for fuel than they did a year ago. Twenty-five airlines have gone belly-up this year--three to four times the usual yearly rate. Major carriers like American, Northwest, and United, still reeling from the industry downturn after September 11, go barely a month without announcing layoffs and capacity cuts.
We now know that as this article was written the Great Recession was taking hold and oil went from $147 in July 2008 to $33 in December 2008. Today, oil has returned to $70, even as the world struggles to climb out of the recession. It seems almost inevitable that we will top $100 per barrel and beyond in the not so distant future.
Good news is prevalent in the aviation industry now-a-days. We hear of profitability, route expansion, purchase orders, successful mergers, etc. Could it be that the recent recycle of oil prices and downward economy was something of a reprieve for airlines? Did it give them the opportunity to reorganize themselves into leaner, fitter companies?
Are these companies better prepared to face rising oil costs? Alternative fuel sources are not currently viable and of no use in the near term. How will airlines fare when oil hits $147 again? Will legacies fall, leaving LCC and regionals? At what price do the airlines become unable to function, and resultant fares unmarketable?
On the short and medium term no it's possible for the World's economy an oil in $150 or more during many days. It's impossible to bear and I HOPE this price aroud 70-80 USD can go on as long as possible.