High Oil Prices Squeezing Airlines

[700UW]

High oil prices squeezing airlines
Already-strained carriers eye pillows, artwork for cost cuts
STAN CHOE
Staff Writer
Airlines are looking for new ways to cut their costs, from taking away pillows on many flights to having less art in airport terminals, as the price of oil hit a four-month high Wednesday.

Charlotte Observer (Free Subscription)

This quote caught my eye:

"It's a grave concern," airline spokesman David Castelveter said. "It all depends on where it levels off. Not many people would have anticipated $60 or higher."

US Airways says it won't seek any more worker concessions to cut costs.

Now this is the same spokesman who said there is NO mandatory Overtime in PHL and the same one who blamed the employees in the x-mas meltdown.

Does anyone believe him?

I for one sure don't!

 

[delldude]

US Airways says it won't seek any more worker concessions to cut costs.

but thats the only way to cut costs here...... :down:

 

[Phantom Fixer]

"Not seeking further concessions" is one thing , that is if you care to believe this persons comments?

However , nothing says that further pull downs in services , abolishments , or greater degree's of outsourcing isn't an option for them.

Those that voted away our work and the scope langauge on the Mainline fleet size are the very ones that have opened up the options for everything still being on the table , up to the point that remaining in business becomes all but pointless.

Gettin rid of pillows and airport art is one thing...but $370,000.00 is savings for doing without pillows is but a drop in the bucket. Remember , Lakefield said his salary was a pimple...so what are pillows? , well , other than another area to alienate our passengers whom have grown to expect such things.

The flying public has voted with thier wallets to create a total Wal-Martinization of this industry....so unless you want to pay what it really costs to fly? Don't whine when the little extras in service go away to accomodate you at these prices. The average airline employee has already carried you and the company on its collective back about as far as we intend too. Time to pony up some money for fuel costs FF's....remember this when you can't negotiate a favorable price at the gas pump when you go to fill up that gas guzzling SUV too.

 

[usairways_vote_NO]

Was he the same that said no further concessions before too?

Don't forget high wages and benefits are squeezing airlines.

How about high airfares squeezing customers?

 

[whlinder]

I don't have time to try to do much of an analysis, but how much is this the fault of oil prices vs. the weak dollar? Air Canada reported a 4th quarter profit (I haven't looked to see whether or not it was an 'accounting' profit like the one US reported recently) somehow, and foreign airlines aren't in the dire straits that US ones are in....

 

[ALCARLOS]

It may be time to call on the pilots to work a full 2,000 hours during the year. This would approximate full time in most industries.

It should not be surprising that when employees work a maximun of 1,000 hours a year, their pay showly begins to reflect the part time status.

 

[speedbird86]

"Not many people would have anticipated $60 or higher" says Castelveter.

I would suggest US management read these boards. People have been saying for months it could hit $60 p/bbl. It's been all over the newpapers, television. OPEC stated back some two months ago that production will be reduced.
Do these people ever read?
Just proves what we've been saying all along. This company is run by a bunch of boobs that have no plan or vision.

If it wasn't so sad it would be a good laugh.

 

[supercruiser]

It may be time to call on the pilots to work a full 2,000 hours during the year. This would approximate full time in most industries.

[post="254240"][/post]​

ALCARLOS,

This hardly rates a response because you appear to be totally clueless about how pilots (and f/a's) get paid. For whatever reason, tradition I suppose, the pay only starts when the plane starts moving. Do you think these crews are not at work or on duty when the plane is not moving? That would be like an office worker only getting paid when they were actually typing, or a mechanic only getting paid when they were actually turning a wrench. Flight crews can easily work a 14 hr duty day, but only get paid for the 6 to 8 hrs the plane actually flew.

Please get a clue before you post something so ridiculous. Do YOU only get paid when you are actually physically doing your job, or do you get paid once you get to work, like most normal workers do? By the way, the FAA law is 1000 "flt" hrs a year, not 1000 "on duty" hrs a year.

supercruiser

 

[USA320Pilot]

"The forecast remains bleak for the money-losing airline industry, as the federal Energy Information Administration expects oil to remain in the high- to mid-$40s range through next year."

See Story

Regards,

USA320Pilot

 

[FWAAA]

"The forecast remains bleak for the money-losing airline industry, as the federal Energy Information Administration expects oil to remain in the high- to mid-$40s range through next year."

See Story

[post="254338"][/post]​

Sure, some inept federal bureaucrats didn't see it coming, but we're talking about private industry CEOs. We rightfully expect more from people with real jobs than government hacks.

 

[Borescope]

Gettin rid of pillows and airport art is one thing...but $370,000.00 is savings for doing without pillows is but a drop in the bucket.

[post="254234"][/post]​

Thats kind of like saying, "I not going to vote because it won't matter". We proved this statement wrong in the last couple of elections. Every little "drop in the bucket" helps. Add it all together and it could overflow.

 

[Phantom Fixer]

Thats kind of like saying, "I not going to vote because it won't matter". We proved this statement wrong in the last couple of elections. Every little "drop in the bucket" helps. Add it all together and it could overflow.

[post="254352"][/post]​

You completely missed my point...as $370,000 matters every bit as much as Lakefield not accepting less too. Maybe a Borescope is in order?

 

[BoeingBoy]

"The forecast remains bleak for the money-losing airline industry, as the federal Energy Information Administration expects oil to remain in the high- to mid-$40s range through next year."

[post="254338"][/post]​

I shouldn't do your research for you, but what they actually said was:

"EIA projects that WTI prices are likely to remain near the high-to-mid-$40’s (or higher) per barrel range throughout 2005-2006. It is emphasized that oil prices are likely to be sensitive to any incremental supply tightness that appears during periods of peak demand worldwide. Imbalances (real or perceived) in light product markets could cause light crude oil prices (such as WTI) to increase to well above $50 per barrel, as has recently occurred."

Jim