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Price Of Oil And Airlines
There is a lot of talk and valid talk that the airlines are doing well and the price of oil always comes up. And yes I would acknowledge that it is a huge cost and cost savings to the airlines. But, there is a flip side as well. There are thousand of people in the oil industry that have been layed off. A lot of these people fly all over the world on a daily basis are not flying anymore and thoughts that were layed off are sure not flying for pleasure. This huge industry must be having some impact on the bottom line.
RE: Price Of Oil And Airlines
The savings from lower fuel cost are much greater than reduction in demand from laid-off oil industry workers, even with a multiplier effect. Probably 10-20x.
RE: Price Of Oil And Airlines
| Quoting Beatyair (Thread starter): A lot of these people fly all over the world on a daily basis are not flying anymore and thoughts that were layed off are sure not flying for pleasure. |
On 16 March BA announced that its LHR-GYD-LHR service would be suspended. Yesterday (29 April), only 44 days later, BA 321 G-MEDF in mid-haul configuration operated the last service before this flights suspension. There can be little doubt that this relatively sudden discontinuation reflected this flights dependency on Azerbaijan's oil industry and the decline in crude prices.
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