Re: Everybody missed on this

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Clay,
Since the oil went from $19 to $55 in almost a year, the fares didn't raise
the fares in a proportional way. This is hurting them big time. The airlines
did everything they could, including outsourcing some work, increasing the
utilization, laying off people and reducing the salaries of the people who
are still ungainfully unemployed.
There isn't enough room to squeeze any more.

So, this fare increase is long overdue if you ask me. Low low yields with
highest oil prices in the history is a combination of death for a lot of
airlines.

All the majors, to a certain extend are leaner and meaner compared to 3-4
years ago. It's the oil price that's killing them.

I read United's quarterly press release yesterday. They are paying $1.5
BILLION ( that's $1,500,000,000)!!! More for oil this year .. That's an
outrages number. If it wasn't for this they would be reporting pretty nice
profits.

BAHA
Fan of Ua 747 upperdecks

-----Original Message-----
From: Clay Wardlow [mailto:clay.wardlow@xxxxxxxx]
Sent: Thursday, October 28, 2004 9:28 AM
To: Bahadir Acuner; AIRLINE@xxxxxxxxxxxxxxxxx
Subject: RE: Everybody missed on this

Fan of fare increases, are you crazy man?

The airlines need to go through a much needed diet. There is so much fat
and waste at the biggies especially. This has been a long time coming.

There's lots of change that needs to happen, not just in the aviation
industry, but world-wide. Oil is getting more expensive. Demand is going
up, supply is going down. Now we know there are other sources of energy
for cars (etc), and they are becoming more popular. Is there such a
thing for airplanes? What happens to the industry if fuel prices never
stop going up? Fares can only go up so much before the average person
can't fly. That's not going to save the airlines.

Clay - SEA
Fan of the maglev train they talked about on the Discovery Channel the
other day.


-----Original Message-----
From: Bahadir Acuner [mailto:bahadiracuner@xxxxxxxxx]
Sent: Wednesday, October 27, 2004 7:08 AM
Subject: Everybody missed on this

WN has increased some of the fares by 50% few days ago. In the day and
age
of $55/barrel oil prices I am hoping that this will take care of yield
problems in the industry. There will be less of $99 one way special
fares.

BAHA
Fan of fare increases so that airlines can stay afloat.

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