How much longer?
In article "Matt W. Barrow" writes:
"C J Campbell" wrote
Considering that there are waiting lists for people to buy a Cessna 172
for nearly $300,000, almost double what one cost a couple years ago, I
doubt that the price of gas is going to have much effect on aviation, even
if it goes to $100/gallon. The only effect will be to make the complaints
louder.
The cost of gas is a pittance compared to whatever else people spend on an
airplane. If gas starts to hurt airplane sales, the manufacturers will
simply offer incentives like Cessna has done in the past -- a free year's
fuel. Or more.
Operating cost is early 2007 were $185 an hour and fuel for me was an
average of $3.78; now it's $5.11 - at 15GPH my new cost is $20 more an hour
($205). My TOTAL cost is 11% higher.
Fortunately, I can just adjust my margins to match and my tax accountant has
new numbers to work with.
The problem is that costs go up for more than just gas. The local airport
had been raising their tie-down rates tied to the consumer price index, though
they are now talking of raising it much faster than that. Even tied to CPI,
the price of energy, food, etc., affect the price of tie-downs.
The mechanic needs to buy gasoline to get to work, and live his life. He
needs to buy food, clothes, etc. As these become more expensive, he has to
raise his prices to maintain his margins.
Those who manufacture and deliver aircraft parts need to raise their prices,
because their costs have gone up, both for the product, and for basic survival.
The food went up because the folks who deliver it pay more for gas, and for
everything else they need; the folks who retail it likewise have higher costs.
Even the folks who farm it need to fuel the tractors, feed themselves, buy
those pesky clothes, etc. They need to charge more. Conversion of food crops
to fuel crops for ethanol makes the food problem worse, but pushing up food
prices helps the farmers some.
When the price of energy goes up, so does a lot of other stuff that depends
on it, directly or indirectly.
For those who cannot pass on their increased costs, the choices are fly
cheaper, fly less, or don't fly at all.
I belive that we could make energy less expensive in this country, if we
had the will to do so.
Alan
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