Posts: 1144
Joined: Thu Jun 08, 2000 4:24 am

Airlines Vs Big Oil

Wed Jan 24, 2001 11:32 pm

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
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RE: Airlines Vs Big Oil

Wed Jan 24, 2001 11:51 pm

Greed=Opec and Big Oil. Consumers suffer.

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Joined: Wed Nov 17, 1999 8:28 pm

RE: Airlines Vs Big Oil

Thu Jan 25, 2001 4:03 am

Those airlines with brains hedge against fuel prices. Those who don't hedge will either make money (if the oil price drops) or lose considerable amounts of money (if the oil prices rises).

Laurens Janssen
Posts: 4727
Joined: Sat Dec 04, 1999 1:58 am

RE: Airlines Vs Big Oil

Thu Jan 25, 2001 4:23 am

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.