> Further to Rob's post re fuel costs........
>
Yes - Its an all over reduction of older aircraft, which must produce a
more profitable company. But no new aircraft on order.
25%% reduction in fleet and with this they are reducing their capacity by
17-18%%. You would have though that new aircraft having, better
efficiency, more seats, etc, would have been an included option.
I did notice the aircraft flying out of HNL,in January, were 737-200
types with ATA, thats old, no wonder they ceased operations in April.
This is a good read:
Is Crude Oil a "Bubble" Ready to Burst?
http://www.sharecafe.com.au/cafetake.asp?a=AV&ai=8927
"Who is Inflating the Bubble in the Global Oil market? The Federal
Reserve is the chief culprit, by slashing the fed funds rate 325-basis
points to a negative -2%%, after adjusting for inflation, and expanding
the US-M3 money supply by 16.5%% from a year ago, in a desperate effort
to stop the slide in the sinking US banking sector. By slashing interest
rates deep into negative territory, the Fed encourages speculation in
commodities by pushing down the dollar, which in turn, is pushing up the
price of dollar-denominated commodities, such as crude oil and gold.
How The U.S. Dollar Came to be the World's Reserve Currency.
http://www.sharecafe.com.au/dreck.asp?a=AV&ai=8858
> "Wine may get better with age, but airplanes don't. And that's a
> problem for US carriers, which operate some of the oldest fleets in
> the world. Younger planes are more fuel efficient, which puts US-based
> airlines at a huge disadvantage when compared with foreign
> competitors.
>
> There's no getting around the fact that the the fleets of US airlines
> are on the old side. On average, American Airlines' planes have seen
> 15 years in the sky, United's 14, and Northwest's 11. Post 9/11, US
> airlines had their hands full just trying to stay in business, but
> when they finally emerged from that downturn, they called in orders
> for hundreds of new jets. Continental and Northwest lined up for
> Boeing's sleek and green new 787. US Airways shopped for shiny new
> Airbus widebodies to fuel its international expansion, and American
> was said to be mulling a replacement for it's rapidly aging MD80
> single aisle fleet.
>
> But high fuel prices and the resulting capacity cuts have put many of
> these plans into question. JetBlue and Airtran have deferred delivery
> of new planes, and an Airbus executive admitted that the company is
> expecting more. When an airline like American cuts its schedule by
> over 10 percent and and sends 85 planes to that big parking lot in the
> sky, you've got to think that fleet renewal falls off the top of its
> to-do list.
>
> In the meantime, foreign airlines are ordering up a storm. Air France
> is waiting on 14 A380 superjumbos, 18 777s, and 20 A320s, while
> Dubai-based Emirates has a stunning 242 planes on order. Aircraft
> renewal yields younger fleets: Air France's planes have an average age
> of 8.8 years, and Emirates' a downright youthful 6.2 years old.
>
> Is this really such a big deal? Absolutely. The Department of
> Transportation estimates that the Boeing 767, a plane that began
> service in 1982, burns an average of $17.85 per passenger per hour,
> while a newer A330 burns $15.72. The newer the fleet, the lower the
> fuel bill. The lower the fuel bill, the lower the total cost of
> operations.
>
> One myth that needs to be debunked, though, is that aging planes are
> less safe. Even with its older fleets and recent high-profile events
> like the grounding of American's MD80s, the US industry has an
> excellent safety record.
>
> But even that comes with a price. Because their planes are older, US
> airlines often find themselves spending more on parts and
> maintenance." Source
Wired.com blog
>
> As somebody said - it's a bit of a worry when your aircraft armrest
> has an ashtray.
>
