Funny how when the price of fuel goes up, those on the company side point out the impact of fuel to the company but then when fuel goes down they seem to find that as a sign of doom and gloom as well.
Did the price of fuel go down because of demand or supply changes? Doesn't seem that either of those things drove the increase. Basically the oil companies are in a position where they can do as they want with the economy. They can use oil the way the government uses taxes and change the price regardless of demand. The difference is that when the government changes taxes generally those tax revenues are dispersed across the economy, when the oil companies increase prices it just goes to their shareholders.
We should Nationalize the oil companies just like the way the government nationalized Labor under the RLA. Oil companies should have to continue to supply oil "for the good of the Nation" and have to negotiate with a consumer representative in order to raise the price of oil the way unions under the RLA have to continue to provide labor until a new agreement is reached. Just as individual workers have the option to cut their losses, quit and leave the industry shareholders could even more easily sell off their stock. Hey if its good for the goose its good for the Gander.
Although any drop in oil prices will be welcomed for us consumers at AA the savings would likely be soaked up by AA to pay for Medical, while fuel has increased a lot it's paled compared to what AA is charging us for our medical, thats gone up by around 600% since 2003. I pay more for Medical than I do for gas, that was not the case in 2003, and my wages are lower to boot, a triple whammy. Our employer on the other hand has cut the size of the company by over 1/3rd, increased revenues in the billions yet they claim to still be struggling. Whereas as we have three calamities to deal with AA has seen their revenues soar while slashing the company, the increased revenue more than makes up for the increase in fuel, the savings by slashing of the operation by a third seem to have disappeared.
AA actually made a profit off me last year where my coverage cost more than my claims. In their latest proposal they want to be able to increase it at an even greater rate, at this rate the TWU Medical will be a profitable entity and can be the equivalent to AMR of what Sabre used to be. AMR is using the profits from TWU members premiums to pay for their contractual obligations to Pilots and Flight Attendants. There's no way that claims by TWU members drove costs up by 600%.
I agree with you that the company should refrain from hiring but from what I hear they pretty much have to because guys are working so much OT they are running into FAA minimums.