Jet Fuel and Job Security
04-22-2011, 08:20 PM
#2
Line Holder
Joined APC: Jul 2009
Position: 121 Right Seat
Posts: 49
To the best of my knowledge the price of jet fuel has not had any significant negative impact on part 91 corporate flight departments. In fact, every pure 91 jet operation I know of has been flying more than ever since the economic bubble burst in 2008. 135 operators have really been hurt by the bad economy and high fuel costs. My guess is the top wealthiest individuals/organizations can afford to buy jets for private use and fuel prices are not going to factor into their decision matrix. Whereas, the semi-wealthy who can afford to charter but cannot afford to actually own the jet are much more sensitive to increases in fuel costs.
Just my two cents.
Just my two cents.
04-23-2011, 03:31 AM
#3
Gets Weekends Off
Joined APC: Mar 2011
Position: Corporate Jet Captain
Posts: 127
Originally Posted by elssaw
To the best of my knowledge the price of jet fuel has not had any significant negative impact on part 91 corporate flight departments. In fact, every pure 91 jet operation I know of has been flying more than ever since the economic bubble burst in 2008. 135 operators have really been hurt by the bad economy and high fuel costs. My guess is the top wealthiest individuals/organizations can afford to buy jets for private use and fuel prices are not going to factor into their decision matrix. Whereas, the semi-wealthy who can afford to charter but cannot afford to actually own the jet are much more sensitive to increases in fuel costs.
Just my two cents.
Just my two cents.
have to raise prices.
04-23-2011, 04:33 AM
#5
Gets Weekends Off
Joined APC: Aug 2008
Posts: 423
Originally Posted by macgruber
Hi All
I was just curious if anyone out there flying part 91 corporate has been affected (job security/less flying) by the rising price of jet fuel.
Thanks in Advance
I was just curious if anyone out there flying part 91 corporate has been affected (job security/less flying) by the rising price of jet fuel.
Thanks in Advance
No.
As usual, we shop fuel the best we can. We also budget fuel fairly high from the start as to absorb the typical summer rise (such B.S.!)
We fly as usual, but you can bet our boss knows what it costs and he is sensitive to it and asks us what fuel is costing all the time. Of course, this does not affect our trips.
Whenever an aircraft owner changes their trips due to fuel costs, start polishing up that resume. Its a pure luxury item despite the weak BS NBAA spews....and you can afford it or you cant.
04-23-2011, 04:43 AM
#6
On Reserve
Thread Starter
Joined APC: Apr 2011
Posts: 13
Originally Posted by NowCorporate
No.
As usual, we shop fuel the best we can. We also budget fuel fairly high from the start as to absorb the typical summer rise (such B.S.!)
We fly as usual, but you can bet our boss knows what it costs and he is sensitive to it and asks us what fuel is costing all the time. Of course, this does not affect our trips.
Whenever an aircraft owner changes their trips due to fuel costs, start polishing up that resume. Its a pure luxury item despite the weak BS NBAA spews....and you can afford it or you cant.
As usual, we shop fuel the best we can. We also budget fuel fairly high from the start as to absorb the typical summer rise (such B.S.!)
We fly as usual, but you can bet our boss knows what it costs and he is sensitive to it and asks us what fuel is costing all the time. Of course, this does not affect our trips.
Whenever an aircraft owner changes their trips due to fuel costs, start polishing up that resume. Its a pure luxury item despite the weak BS NBAA spews....and you can afford it or you cant.
Thats pretty much what we do as well. Bossman told me after i started this thread (this morning) to start looking for an xls so things cant be to bad.
thanks for everyones input
04-23-2011, 04:44 AM
#7
The NeverEnding Story
Joined APC: Sep 2005
Posts: 7,504
I work for a small company, and while we are sensitive to fuel costs, we don't cancel trips due to price.
We have the option of using our Cirrus for trips with just 1/2 pax, and often utilize that if time isn't pressed and weather cooperates. Then again, we were doing that a couple years ago when fuel was under $3/gal.
Rising energy costs can certainly stunt the economic recovery, but aviation in general and bizav specifically *should* be able to weather a fuel spike better in an economy trending upward vs. one that was falling downward in late 08/early 09.
We have the option of using our Cirrus for trips with just 1/2 pax, and often utilize that if time isn't pressed and weather cooperates. Then again, we were doing that a couple years ago when fuel was under $3/gal.
Rising energy costs can certainly stunt the economic recovery, but aviation in general and bizav specifically *should* be able to weather a fuel spike better in an economy trending upward vs. one that was falling downward in late 08/early 09.
04-25-2011, 01:03 PM
#8
Line Holder
Joined APC: Oct 2010
Position: Corporate Captain
Posts: 29
I think it would be best to gauge the entity's financial health that uses the business aircraft to possibly answer that question.
Well capitalized, profitable entity= less sensitivity to increased direct operating costs= possible sustained demand.
Under capitalized, unprofitable entity= more sensitive= possible reduced demand.
Well capitalized, profitable entity= less sensitivity to increased direct operating costs= possible sustained demand.
Under capitalized, unprofitable entity= more sensitive= possible reduced demand.
04-26-2011, 06:36 AM
#10
On Reserve
Joined APC: Jan 2007
Posts: 19
I was just talking to a couple of 91 guys yesterday about this and they were getting worried about it. They had been outpacing the budget for fuel costs and amout of time flown and the boss man said there was no more money beyond the budget. I asked what they were going to do and they said they were going to start canceling trips. Not good.
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