Airline Fuel question

"Colin W Kingsbury" wrote in message
ink.net...

"Matt Barrow" wrote in message
...

We could also have a good argument over chicken and egg here. If the
value
of the dollar goes down, and oil is priced in dollars, then it is
mathematically predictable that the price of oil will rise
accordingly.
That's how commodities work.

Yes, but fuel prices are still WAY different.

Experts figure that around $5-$12/bbl is an "uncertainty premium" due to
Middle East worries.

I'm talking about USA compared to Europe (and how, despite the difference,
the foreign airlines "make money".

You chopped the conclusion I reached, in that the analogy is not US to
foreign airline, but foreign airlines and Amtrak!


--
Matt
---------------------
Matthew W. Barrow
Site-Fill Homes, LLC.
Montrose, CO

"Colin W Kingsbury" wrote in message
ink.net...

"Matt Barrow" wrote in message
...

We could also have a good argument over chicken and egg here. If the
value
of the dollar goes down, and oil is priced in dollars, then it is
mathematically predictable that the price of oil will rise
accordingly.
That's how commodities work.

Yes, but fuel prices are still WAY different.

Experts figure that around $5-$12/bbl is an "uncertainty premium" due to
Middle East worries. The rest is due to economic growth in Asia, namely
China. This is only going to get worse, until somewhere above $70/bbl
where
we hit a ceiling as shale oil, of which supplies are enormous, becomes
profitable to extract.

The appropriate analogy to the foreign airlines is NOT theUS airlines,
but
AMTRAK.

Agreed, though an important fact is that many foreign airlines enjoy
quasi-monopoly status in certain markets.

Nothing quasi about it; many foreign countires have ONE national airline.

That is one heck of a subsidy.

Not only that, but their taxpayers support the companies as f they were a
national showpiece...ala Amtrak or the Postal Dis-service.

Also, most foreign airlines are primarily international carriers, which is
simply a more profitable market. I suspect that most US airlines turn a
profit on their international routes. One sign of this is that business
class is almost never sold at a discount for tickets originating in the
US.
It's full J-fare or coach.

Yup!!

You may be paying 3x more for fuel in Europe than in the US but European
airlines are not.

Mike
MU-2


"Peterpan" wrote in message
. ..
Delta announced today it will lose another 1 Billion dollars in 2005

Most of the US Airlines are losing money due to higher fuel cost's

In Europe, airlines are making money and the fuel is 3 times more
expensive.

I don't get it.

Is it some new type of math the US airlines are using or have they become
bloated Politically Correct business model disasters due to PC hiring
practices and employee perks?

Or are they looking for a tax payer bailout for their inefficient business
operations?

Just curious

"Mike Rapoport" wrote in message
k.net...
You may be paying 3x more for fuel in Europe than in the US but European
airlines are not.


Care to elaborate on that?


Is it some new type of math the US airlines are using or have they
become
bloated Politically Correct business model disasters due to PC hiring
practices and employee perks?

Or are they looking for a tax payer bailout for their inefficient
business
operations?

Just curious

If you have ever bought jet fuel in Europe you know that it is generally
cheaper than in the US. It is only Avgas that is more expensive over there.
Additionally, airlines on both sides of the Atlantic are not paying FBO
prices which are usually marked up about $1 or more.

Mike
MU-2

"Matt Barrow" wrote in message
...

"Mike Rapoport" wrote in message
k.net...
You may be paying 3x more for fuel in Europe than in the US but European
airlines are not.


Care to elaborate on that?


Is it some new type of math the US airlines are using or have they
become
bloated Politically Correct business model disasters due to PC hiring
practices and employee perks?

Or are they looking for a tax payer bailout for their inefficient
business
operations?

Just curious