With China eliminating it's subsidies I think you will see there demand go down. That should help with the price. I too think speculation is a culprit in the high prices. It is not the sole culprit, you have to look the weak dollar and foreign subsidies as well. Unfortunately, we are now entering hurricane season. Hopefully, they will get speculation under control, because that combined with hurricane season could be catastrophic.

 

Speaking of oil prices, they dropped to $136 today. They are obviously still WAY too high, but a drop of $9 since yesterday is a nice change for once. I wonder what will happen tomorrow....

 

Wow, this sucks. Remind me again why I'm still in class if they are gonna axe me?

 

To give you something to do.

Or so you can finally get that type rating.

Or so you can call yourself an airline pilot.

Or just to waste money.


Missing the misses eh?

 

Hey Gintas how is Comairs training compared to PSA's?

 

Well, I am not sure what rock some people have been hiding under, but A TON of people have been saying for months that gas would be over $4 per gallon by Memorial Day. Speculation also has oil close to $50 per barrel higher than the demand says it should be.

Management, or lack there of, IS to blame. Yes, there are other factors, but they always are and will continue to be the main problem with airlines.

300 is also, IMHO, just a management tactic to scare senior pilots into taking a soon-to-be-offered benefit package to leave. Doubt it will work like they think it will. I just hope it all works out for the better for all the crewmembers who are going to be affected. ( and that goes for all the crewmembers at other airlines as well)

 

Speculators serve a valuable purpose and I think they are being unfairly blamed. I can assure you, if there is money to be made on the short side of oil or any other commodity or stock, they will go there and specualte. Something tells me people won't be attacking speculators if they are driving the price down.

The real culprit for sky rocketing oil prices is the US Treasury Department and the Federal Reserve. For six years, they have paid lip service to the strong dollar policy only to watch the dollar fall to record lows. Were these two groups to coordinate and intervene to strengthen the dollar, oil would collapse to $100 or less. The cost to produce the last barrel of oil is only $75.

Yes, India and China are becoming greater users of oil, but has their usage increased by 100% in the last year as has oil? No. Much of this move in oil is due to the weakening US dollar. Just to prove the point, oil in Euros is up 13% in the last year. Oil in dollars is up 100% in the last year. When the Fed began it's aggressive rate cutting in January, the dollar weaken and oil spiked.

Until the dollar strengthens, oil will remain high. Oil is down $10 in the last two days, but it appears to be nothing more than profit taking. If we raise interest rates a quarter point, intervene to strengthen the dollar, and release 100 million barrels of oil from the SPR, the crisis will be over. It won't happen though.

 

our gov't isn't doing a damn thing to help the American people. they sit and talk about change and what they are supposedly doing and yet nothing changes. It's a shame to see what is happening......

 

Regardless of party, there is absolutely no leadership out there.

 

Good luck Comair guys......this industry sucks...