Soaring fuel costs are devastating airlines industry
May 15, 2008
Skyrocketing fuel costs have put several airlines out of business, the latest Mesa Air's Air Midwest, and the worst could be yet to come.
David Castelvetter with the Air Transport Association says the current situation for airlines is as bad as it was following the 9-11 attacks in 2001 and that it could turn out to be worse.
``Post 9-11, we were buying fuel at 25, 30, 35 dollars a barrel for crude (oil), today's we're buying it at $120 a barrel. If you throw in the refining costs, now we're buying at about $150. It's just an enormous cost," he says. ``We're on par from an economic perspective to see consequences far greater than 9-11."
In 2000, airlines spent about $18 billion on fuel, last year they spent about $41 million and this year, the cost will top $60 billion, Castelvetter said.
``We're looking at the most enormous and outrageous increases in fuel prices in history."
Eight billion of the fuel costs will be spent while jets wait out flight delays on the tarmac, Castelvetter said.
``We can't have airplanes sitting on the ground burning fuel for 45 minutes at a time, waiting for clearance to take off. That's wasted fuel."
He added, ``You see the seven carriers that have closed their doors, one reorganizing. You see others telling you that later in the year, they're going to put older, fuel-guzzling airplanes on the ground. They're making very cifficult decisions, and it's all in the interests of survival."
Castelvetter said the government needs to help with the problem.
``We need this country to step up to the plate and modernize the air traffic control system, so they're flying straighter, more efficient routes. We can't have airplanes sitting on the ground, burning fuel for 45 minutes at a time."
Phoenix-based Mesa Air announced the closure of its Air Midwest subsidiary Wednesday, blaming rising fuel costs.
http://www.ktar.com/index.php?nid=388&sid=837860
May 15, 2008
Skyrocketing fuel costs have put several airlines out of business, the latest Mesa Air's Air Midwest, and the worst could be yet to come.
David Castelvetter with the Air Transport Association says the current situation for airlines is as bad as it was following the 9-11 attacks in 2001 and that it could turn out to be worse.
``Post 9-11, we were buying fuel at 25, 30, 35 dollars a barrel for crude (oil), today's we're buying it at $120 a barrel. If you throw in the refining costs, now we're buying at about $150. It's just an enormous cost," he says. ``We're on par from an economic perspective to see consequences far greater than 9-11."
In 2000, airlines spent about $18 billion on fuel, last year they spent about $41 million and this year, the cost will top $60 billion, Castelvetter said.
``We're looking at the most enormous and outrageous increases in fuel prices in history."
Eight billion of the fuel costs will be spent while jets wait out flight delays on the tarmac, Castelvetter said.
``We can't have airplanes sitting on the ground burning fuel for 45 minutes at a time, waiting for clearance to take off. That's wasted fuel."
He added, ``You see the seven carriers that have closed their doors, one reorganizing. You see others telling you that later in the year, they're going to put older, fuel-guzzling airplanes on the ground. They're making very cifficult decisions, and it's all in the interests of survival."
Castelvetter said the government needs to help with the problem.
``We need this country to step up to the plate and modernize the air traffic control system, so they're flying straighter, more efficient routes. We can't have airplanes sitting on the ground, burning fuel for 45 minutes at a time."
Phoenix-based Mesa Air announced the closure of its Air Midwest subsidiary Wednesday, blaming rising fuel costs.
http://www.ktar.com/index.php?nid=388&sid=837860