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  #11  
Old 27th June 2008, 09:28 AM
Greg McDonald Greg McDonald is offline
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From NEWS.COM.AU:

WORLD oil prices smashed through the $US140 a barrel barrier for the first time today after the president of OPEC predicted fresh price spikes.

Algerian Energy Minister Chakib Khelil said crude, which has already rocketed in value in the past year, could hit $US170 later this year because of the ailing US dollar and geopolitical unrest.

New York's main oil futures contract, light sweet crude for August delivery, closed up a hefty $5.29 at $139.64 a barrel, marking a record finish.

The contract had earlier struck an all-time intraday price peak of $140.39 as the market digested the OPEC president's outlook.

In London, Brent North Sea crude for August delivery jumped $US5.50 to settle at an all-time closing peak of $US139.83. Brent had earlier streaked to a record $US140.56 in frenzied intraday trading.

Prices rebounded strongly after tumbling more than $US3 yesterday in volatile trade. Spiking prices are causing inflation angst in many world capitals.

"I predict probably prices of $US150 to $US170 this (northern) summer," Mr Khelil said in an interview with the France 24 news channel.

"It (the market) will probably fall a bit towards the end of the year," he said.

The OPEC president said that a weak US dollar was the main cause behind surging oil prices. The weakened US currency has made goods priced in the dollar, like oil, cheaper for purchasers armed with stronger currencies, stoking speculative oil demand.

Mr Khelil also cited Western "threats against Iran" over its nuclear power drive as another key reason for prices spiking on world markets. Oil prices have more than doubled in the past year.

"If (the threats) increase, I think the price of oil will rise further this (nortrhern) summer as it would coincide with stronger demand for gasoline, particularly in the United States," Mr Khelil said.

Petrol demand traditionally rises in the US, the world's largest oil importer, during the summer months as Americans take to the roads on holiday.

The OPEC chief said that the Organisation of the Petroleum Exporting Countries was ready to meet any additional demand for crude in the future. OPEC produces about 40 per cent of the world's oil.

Oil prices had cooled yesterday after a US Government survey showed an unexpected rise in energy stockpiles in the US.

The US Department of Energy said that reserves of crude had risen for the first time in six weeks, by 800,000 barrels, in the week to June 20. Analysts had expected a drop of 1.1 million barrels.

"The report also showed four week average gasoline demand is 2.1 per cent down from a year ago; this goes to show more and more people are reacting to high oil prices," said Nimit Khamar of the Sucden brokerage.
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  #12  
Old 27th June 2008, 11:44 AM
Adrian B Adrian B is offline
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Monty’s deleted comment regarding alternative fuels is spot on. Biofuels and other power alternatives need to be investigated and fast...I have personally seen advances in alternative fuels canned due to not my problem or not in my back yard mentalities.

From an aviation perspective, the time has arrived when airlines will shut down because they cannot sustain services on lean profits, or continue to sustain temporary losses. As we have seen, airlines are now looking at generating alternative revenue (i.e. non fuel related activities such as food and drink, 'services' like booking fees,) These are easy ways to raise money without additional cost, charging for what used to be free. Unfortunately, the traveling public will not like it, but I feel it is a given that the industry will go down this path. You can only cut so far without raising prices before your product starts to suffer, yet some will say that these alternative charges will harm the product anyway.

Just think about this though.

I cannot see how the cost of oil production has risen; therefore someone is getting very rich out of all of this
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  #13  
Old 6th July 2008, 04:54 AM
Mike Scott Mike Scott is offline
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Other than fuel prices the article below lays out the terms in human costs.
MS

CHICAGO - United Airlines pilot Todd Coomans has yet to fully recover from a painful furlough five years ago that set his airline career back several years and, along the way, also cost him his marriage.

Now the 46-year-old first officer, who returned to United just a year and a half ago, is bracing for another layoff. And this time he thinks the prospects are even worse. "I can't believe I'm going through it again," said Coomans, who now may look for work in China.

Coomans is convinced he will be among the 950 pilots that United, a unit of UAL Corp, will eliminate as part of a downsizing effort that the No. 2 U.S. carrier hopes will offset skyrocketing fuel prices.

"This is all I've done my adult life. I love flying," Coomans said. "I don't know if I can do this up and down every few years."

The last time he was furloughed, he found work at an air charter company. But the sudden job loss put such a strain on his marriage that it ended in divorce.

Coomans and his colleagues are not alone. While UAL, which plans to cut up to 1,600 jobs, is the first big airline to detail the impact of cuts on pilots, layoffs are planned at all major carriers as they try to offset record-high fuel prices.

AMR Corp's American Airlines said in May staff cuts were coming, and said on Wednesday it would shed 900 flight attendants. Continental Airlines Inc plans to cut 3,000 jobs and US Airways Group Inc plans 1,700 cuts.

Delta Air Lines Inc, which plans to merge with Northwest Airlines, said earlier this year it would eliminate 2,000 jobs. Northwest also expects job cuts.

Downsizing may be the last hope for airlines to avoid potential devastation as fuel costs threaten to negate the progress they made during years of restructuring.

Fuel costs — linked to record-high oil prices — have more than offset a series of fare hikes that led to profits in 2006 and 2007 after five years of losses. The Air Transport Association sees a $10 billion loss for airlines this year.

Clearly, it's as gloomy a time as anyone who works at a major U.S. airline can remember.

Thousands of workers — from management down to baggage handlers — face imminent jobs cuts and a terrible job market. Many airline employees will have to switch careers.

But some employees, like pilots and flight attendants, are in a particularly tight spot because their careers are so closely connected to seniority at a single airline, which dictates pay, work rules, and routes they are assigned to fly.

A further complication is that seniority does not transfer between airlines. A United pilot who takes a job at American, for example, goes to the bottom of American's seniority list.

If a furloughed pilot wants to keep flying for an airline, the options are limited, especially in the United States.

Some airlines have arrangements with regional partners to give preference to furloughed employees for open positions. Often, however, the pay is much less for a regional pilot, and those jobs also are scarce.

Regional carriers flying 70-seat aircraft, such as Republic Airways Holdings Inc, continue to see some growth.

Airline consultant Robert Mann noted hiring opportunities for pilots in the Middle East and Asia. Many of those jobs, however, are contract positions, meaning the job is not guaranteed once the contract ends.

Some pilots who are in the U.S. National Guard also may consider flying for the military, Mann said.

"So, there are options for those who had the foresight to create options," he said. "I think it's a function of what foresight you've had to create a safety net."

Anger is simmering among pilots about the prospect for unemployment after they and other work groups made steep sacrifices to help save their companies in recent years.

Unlike the last downturn — triggered in large part by the September 11, 2001, attacks — this one could have been avoided, said United Capt. Jay Happner.

He's not buying management arguments that no one could have predicted oil prices would rise to $140 a barrel. Airlines could have been better prepared, he said.

"We're very angry that it's come to this," Happner said.

Happner, 54, who believes his job is safe for now, said simply ducking a round of layoffs does not preserve a pilot's lifestyle.

For every large aircraft eliminated from the fleet, pilots who flew that plane lose status that they worked hard to achieve. Senior pilots find themselves flying smaller planes on less-desirable routes or large planes with a lower rank.

"It just cascades," he said. "It ripples throughout the whole airline
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  #14  
Old 7th July 2008, 11:04 PM
Joe Frampton Joe Frampton is offline
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Quote:
Originally Posted by Grant Smith View Post
Ben,

In some places it's cracking $1.70+ a litre...
I win
I live in Ireland
Unleaded here right now is about €1.40 litre (AUD 2.28 litre)

The world hasn't stopped yet...
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