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Major US Airlines Take Thier Plea to the US Public
An Open Letter: Help Save Airlines and US Economy - By Tim Vertz
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To whom it may concern;
With crude oil at an all-time high of $146, and the skyrocketing cost of fuel is impacting our customers, our employees, the communities we serve, and the economy as a whole. United, and the majority of other major U.S. airlines, are asking our most loyal customers to join us in pushing for legislation to add more transparency and disclosure in the oil markets. Please see the attached open letter from the leaders of the U.S. airline industry.
Our country is facing a possible sharp economic downturn because of skyrocketing oil and fuel prices, but by pulling together, we can all do something to help now.
For airlines, ultra-expensive fuel means thousands of lost jobs and severe reductions in air service to both large and small communities. To the broader economy, oil prices mean slower activity and widespread economic pain. This pain can be alleviated, and that is why we are taking the extraordinary step of writing this joint letter to our customers. Since high oil prices are partly a response to normal market forces, the nation needs to focus on increased energy supplies and conservation. However, there is another side to this story because normal market forces are being dangerously amplified by poorly regulated market speculation.
Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.
Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper.
The nation needs to pull together to reform the oil markets and solve this growing problem.
We need your help. Get more information and contact Congress by visiting www.StopOilSpeculationNow.com.
Robert Fornaro Bill Ayer Lawrence Kellner
Chairman Chairman, Chairman and CEO
and President President and CEO Continental Airlines
Air Tran Airways Alaska Airlines, Inc.
Gerard J. Arpey Dave Badger Gary Kelly
Chairman, CEO, Jet Blue CEO South West Airlines
President and CEO Airways Corp. Corp.
American Airlines, Inc.
Richard Anderson Mark B. Dunkerly Timothy E. Hoeksema
CEO President and CEO Chairman, President and CEO
Delta Air Lines, Inc. Hawaiian Airlines, Inc Midwest Airlines
Douglas M. Steenland Glenn F. Tilton
President and CEO Chairman, President
Northwest Airlines, Inc. and CEO, United Airlines
Douglas Parker
Chairman and CEO
US Airways Group, Inc.
Frequent Flyer Miles Benefit Shrinking
TTimes Airlines Report
NEW YORK -
Airlines have awarded more than 19 trillion frequent flyer miles over the past 25 years and more than 14 trillion of those miles are unredeemed. The rate of awards is increasing annually, many of those miles would most likely not be swapped for free ticket, but now they also expire more quickly than before, that represents a poor deal for the consuming public.
With planes fuller than ever, granting free trips could displace paying passengers, while unsettled consumers may be ready to cash in those miles to save money.
"The airlines would have some problem handling the level of reward redemption," said one expert. "There is a liability to the airlines but also its an important factor in attracting those customers to the airlines"
With the growing supply of frequent-flyer miles and the relative scarcity of available seats, airlines could risk cutting more benefits for the consuming public.
"The risk is that these points become perceived to be less valuable, someone have to mitigate this somehow". Airlines have reacted by offering other alternatives to redeem miles by swapping points for merchandise like an iPod or trading for gift cards through sites like points.com.
But despite the liabilities and risk, the programs are a valuable part of an airline's business. "It's so important for us," said Billy Sanez, a spokesman for American Airlines. "The mileage program is one of the top-three reasons why people fly with us." "The liability is part of having a program," he said. Even with the average consumer belonging to multiple award programs, they still have a marked effect on buying behavior.
"It does make a difference in the way that I fly," said one frequent flyer member, the airlines did think twice if they dont handle those benefits well, it will be a poor business management I think.
Pope Arrives in Brazil for a Visit
TTimes World News Report
Pope Benedict arrived in Brazil for an official visit to the world largest roman catholic country. Talking to journalists on the flight, the Pope said his main concern in the region was the loss of millions of disaffected Roman Catholics to evangelical churches.
According to a recent study, some 64% of Brazilians are Catholic, but this number represents a 10% fall compared to 10 years ago and contrasts with an upsurge in converts to evangelical churches.
The issue of abortion is also expected to feature, amid dismay within the Catholic Church at Mexico City's move to legalise it.
'Peace to all of you'
Brazilian President Luiz Inacio Lula da Silva greeted Pope Benedict as his plane touched down at Sao Paulo's international airport.
HAVE YOUR SAY
The Catholic church is losing congregations because of its orthodox view
Alessandro Cavalcante, Sao Paulo
"I extend my greetings to all the peoples of Latin America and the Caribbean in the words of the Apostle: 'Peace to all of you who are in Christ'," the Pope said, speaking in Portuguese.
Airliner With 104 Aboard Crashes in Nigeria
By BASHIR ADIGUN
ABUJA, Nigeria (Oct. 29) - A Nigerian airliner reportedly carrying 104
people crashed Sunday shortly after takeoff from the airport in Abuja during
a storm and at least six people survived, Nigerian media reported.
The airline had 104 passengers and crew members on board when it went down
near the airport in the capital, state radio reported. The report cited
Rowland Iyayi, head of the National Air Space Management Agency, as saying
no survivors had been found, but privately owned Channels Television said at
least six people survived the crash.
The plane was headed to the northwest city of Sokoto, according to the
reports. Channels had earlier reported the plane was headed to Lagos.
A local radio station, Ray Power FM, said the plane was owned by Aviation
Development Co., a private Nigerian airline.
Angus Ozoaka, head of the accidents investigation bureau in the Aviation
Ministry, said the crash had been reported to his office but he had no
details.
"I'm trying to get to the scene now. I can't say anything more until I've
been to the scene," Ozoaka told The Associated Press by telephone from
Abuja.
ADC last suffered a crash in November 1996, when one of its jets plunged
into a lagoon outside Nigeria's main city, Lagos, killing all 143 aboard.
Associated Press writer Dulue Mbachu in Lagos contributed to this report.
The Troubled U.S. Airline Industry – Standing up to the Economic Challenge?
by Sharon J. Alfred
There is no doubt about it the U.S. airline industry is going through some economically challenging times. Ever-growing operational expenses, high fuel costs, and intense competition from the low-cost “no frills” carriers are just some of the major factors that have forced some of the big flagship players like US Airways to file bankruptcy. Add to this mix, the lingering fear of flying that the terrorist attacks of September 11, 2001 have created for the typical American traveler. The result is higher costs to run a major carrier, but no way to pass on these costs to the travelers who fly the airways. Major airlines are trying to stay economically afloat in today’s tough market by reducing operating costs as best they can. But, there is only so much they can do.
Inside the mysteries of airline fares
Why is the passenger in the next seat paying less than me?
By Jon Bonné
MSNBC
May 8, 2003 - It would have been an ordinary business flight. William Harris and four coworkers needed to make a quick trip from Birmingham, Ala., to Charlotte, N.C., this past winter. Harris, a national account manager for BellSouth, checked with several different airlines. The best price he could find? A $950 ticket. “I could have flown round trip to Europe for $300, but I couldn’t get to Charlotte for three times that price,” Harris says. “It just didn’t make sense for us to spend $5,000.” They drove the 400 miles instead.
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