Comments on: High Price To Pay http://www.fleetbuzzeditorial.com/2008/03/25/high-price-to-pay/ Tue, 06 Jan 2009 22:41:59 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Jacobin777 http://www.fleetbuzzeditorial.com/2008/03/25/high-price-to-pay/comment-page-1/#comment-910 Jacobin777 Wed, 26 Mar 2008 01:14:53 +0000 http://www.fleetbuzzeditorial.com/2008/03/25/high-price-to-pay/#comment-910 I have to agree with most things mentioned...companies which have good business plans and adapt to a changing environment will survive and those which don't will be sol.... I have to agree with most things mentioned…companies which have good business plans and adapt to a changing environment will survive and those which don’t will be sol….

]]> By: keesje http://www.fleetbuzzeditorial.com/2008/03/25/high-price-to-pay/comment-page-1/#comment-908 keesje Tue, 25 Mar 2008 12:59:15 +0000 http://www.fleetbuzzeditorial.com/2008/03/25/high-price-to-pay/#comment-908 <i>it won’t be long before we see the eyes peering over new 737 and A320 replacements too</i> I think Airbus and Boeing are a bit lazy about replacing their cash cows. Looking at backlogs this isn't surprizing. I opened a thread on a pragmatic way (I think) to reduce fuel consumption with at least 20% on short (<700nm) flights that form the majority of 737/a320 operations in most markets. http://www.fleetbuzz.com/forums//index.php?showtopic=19557 it won’t be long before we see the eyes peering over new 737 and A320 replacements too

I think Airbus and Boeing are a bit lazy about replacing their cash cows. Looking at backlogs this isn’t surprizing.

I opened a thread on a pragmatic way (I think) to reduce fuel consumption with at least 20% on short (<700nm) flights that form the majority of 737/a320 operations in most markets.

http://www.fleetbuzz.com/forums//index.php?showtopic=19557

]]> By: Aurora http://www.fleetbuzzeditorial.com/2008/03/25/high-price-to-pay/comment-page-1/#comment-907 Aurora Tue, 25 Mar 2008 12:35:57 +0000 http://www.fleetbuzzeditorial.com/2008/03/25/high-price-to-pay/#comment-907 Conservation, Alan? Unfortunately, the political will is sorely lacking to create the type of environment that will foster "conservation". Things like a huge tax on gasoline to pay for alternative fuels development, investment in mass transit, etc. No politico wants to be in the forefront to deprive Bubba of his right to drive his massive pickup truck 80 mph, or get the soccer moms out of their giant SUV's and force the little darlings to take the bus to and from school. But there may be an upside here? At least we should not be seeing silly start ups like Virgin America or Skybus entering the industry with their "revolutionary" and "outside-the-box" business models! ;-) Best regards, Aurora in Texas Conservation, Alan? Unfortunately, the political will is sorely lacking to create the type of environment that will foster “conservation”. Things like a huge tax on gasoline to pay for alternative fuels development, investment in mass transit, etc. No politico wants to be in the forefront to deprive Bubba of his right to drive his massive pickup truck 80 mph, or get the soccer moms out of their giant SUV’s and force the little darlings to take the bus to and from school. But there may be an upside here? At least we should not be seeing silly start ups like Virgin America or Skybus entering the industry with their “revolutionary” and “outside-the-box” business models! ;-)
Best regards,
Aurora in Texas

]]> By: AlanfromBigEasy http://www.fleetbuzzeditorial.com/2008/03/25/high-price-to-pay/comment-page-1/#comment-906 AlanfromBigEasy Tue, 25 Mar 2008 11:42:46 +0000 http://www.fleetbuzzeditorial.com/2008/03/25/high-price-to-pay/#comment-906 T Boone Pickens says $150 oil in 2010. The EU Commissioner of Energy says "Be prepared for $200 oil in 2011". A model I have been working with has oil at $315 to $350 cracking the US economy and GDP -9%. Oil then drops to about $180/barrel. The date varies with the scenario, but as early as 2012. No significant new production can come on-line in less than 7 years, And scheduled new projects for new supply (except tar sands) end in 2012, only delayed projects will come on-line 2013-2014+ Our hope ? Build non-oil transportation and conserve. Electrify existing railroads and expand their capacity, build Urban Rail, make room for bicycles, begin to move to walkable neighborhoods and CONSERVE ! Implement this "faster than planned" http://www.aspo-usa.com/index.php?option=com_content&task=view&id=168&Itemid=91 T Boone Pickens says $150 oil in 2010.

The EU Commissioner of Energy says “Be prepared for $200 oil in 2011″.

A model I have been working with has oil at $315 to $350 cracking the US economy and GDP -9%. Oil then drops to about $180/barrel. The date varies with the scenario, but as early as 2012.

No significant new production can come on-line in less than 7 years, And scheduled new projects for new supply (except tar sands) end in 2012, only delayed projects will come on-line 2013-2014+

Our hope ?

Build non-oil transportation and conserve. Electrify existing railroads and expand their capacity, build Urban Rail, make room for bicycles, begin to move to walkable neighborhoods and CONSERVE !

Implement this “faster than planned”

http://www.aspo-usa.com/index.php?option=com_content&task=view&id=168&Itemid=91

]]> By: Aurora http://www.fleetbuzzeditorial.com/2008/03/25/high-price-to-pay/comment-page-1/#comment-905 Aurora Tue, 25 Mar 2008 09:21:01 +0000 http://www.fleetbuzzeditorial.com/2008/03/25/high-price-to-pay/#comment-905 Consider that even those airlines that have aggressive hedging strategies in place are adversely impacted; the money spent on hedges has an associated opportunity costs. Operating funds that could have been reinvested in the business are being used as risk insurance. Meanwhile, fleet replacement and other priorities languish. For sure if the price of Jet A keeps rising, the commercial aviation landscape in 5 years will be vastly different that today with many of the players, some of whom you mentioned, gone or on their way out; no IPO, but DOA. Consider that even those airlines that have aggressive hedging strategies in place are adversely impacted; the money spent on hedges has an associated opportunity costs. Operating funds that could have been reinvested in the business are being used as risk insurance. Meanwhile, fleet replacement and other priorities languish. For sure if the price of Jet A keeps rising, the commercial aviation landscape in 5 years will be vastly different that today with many of the players, some of whom you mentioned, gone or on their way out; no IPO, but DOA.

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