Continental parking planes

[raven54]

Article on CBC...it's coming..

http://www.cbc.ca/money/story/2008/06/0 ... alcts.html

[yycflyguy]

Continental Airlines Inc. said Thursday it is cutting 3,000 jobs and reducing capacity in the fourth quarter by 11 per cent, citing record fuel costs and an industry in "crisis."

Also, the company's chief executive and president say they will not take a salary for the rest of this year and will decline bonuses.

Could you imagine these words spoken by Uncle Milty or Uncle Montie???

So let me see if I have this right. ATA, Champion, Skybus, Kittyhawk, Aloha have all closed up shop. United, Continental, Frontier, Spirit and American are all announcing planned layoffs and cutbacks for the 4th quarter... and this is just off the top of my head, I am sure the list is longer.

Time to find a rich girlfriend.

[Rowdy]

...And the hirings at AC, WJ, Jazz, cargojet et al continue without even a hiccup. Most of the canadian operators are scrambling to find qualified people..

Our aviation industry is far far different from the American one! Quit trying to incite some kind pf panic when there really is no need.

[Cat Driver]

Our aviation industry is far far different from the American one! Quit trying to incite some kind pf panic when there really is no need.

You have that right, our fuel is more expensive.

[THEICEMAN]

You have that right, our fuel is more expensive.

Don't forget the taxes!

[raven54]

Come on Rowdy, are you serious? You think nothing will happen in Canada just 'cause you don't want it to? I'm not trying to incite panic, I just provided a link to an article on a topic. It would be pretty cool if the price of oil didn't affect Canadian carriers, but I think that may not be the case.

[Rowdy]

Yes the price of oil is going up and yes the ticket costs will go up as will everything else, but I don't see it crumbling anything this side of the border. Notice how it was a lot of the marginally managed lower cost american carriers that are running into troubles, laying off and parking planes? Hmmm...

I'll start to worry when Westjet talks about cutting down routes or parking airplanes.

[yycflyguy]

Yes the price of oil is going up and yes the ticket costs will go up as will everything else, but I don't see it crumbling anything this side of the border. Notice how it was a lot of the marginally managed lower cost american carriers that are running into troubles, laying off and parking planes? Hmmm...

I'll start to worry when Westjet talks about cutting down routes or parking airplanes.

I think you have blinders on not to think that economic downturn in the US wont have an affect north of the border. It may not be as severe, but we are subject to the same fuel prices, greater taxation with a smaller population base to draw from. I would hardly call American, Continental, Northwest or United "marginally managed".

FYI - at Air Canada there has not been an interview for 2 months now. No new hire courses for the summer and talk that the status quo may extend into the fall. After 2 and a half years of full steam ahead hiring I would at the very least call this a "hiccup".

[. ._]

Canada is booming in Alberta, Sudbury, and to a lesser extent Newfoundland.

That's my take on the economy. I have no idea what it will do for the aeroplane industry.

-istp

[Kosiw]

Well with oil prices x-ing $138.00/barrel today, about the best place for an aviation related job, is to work for a charter company doing business either directly for the oil industry or in some subsidiary way....probably most charter outfits in AB and SK will make out alright in the next while....maybe

[yycflyguy]

Canada is booming in Alberta, Sudbury, and to a lesser extent Newfoundland.

That's my take on the economy. I have no idea what it will do for the aeroplane industry.

-istp

Energy is merely one sector of a national economy. Yes, oil and natural gas have propped up the provinces of which you speak but it is not representative of what the economy is doing.... not sure were Sudbury fits into it. Maybe for mining but you don't hear about the explosive growth in Sudbury that Calgary, Edmonton and Saskatoon has seen.

When your primary trading partner has no money, what do you think it will eventually do to your economy?

[Main Gear]

Well it was good while it lasted, but analyst are saying the effects will be worst than 9/11. All of the restructuring from before isn't enough to curb high oil prices....



"Many airlines will not survive” oil crisis warns IATA

The leaders of the world’s airlines unanimously agreed to a resolution calling for governments, airports and labour to take immediate action to help the industry survive the growing financial crisis.
"Many more will not survive," Pinto said
Zoom
The resolution was made at the International Air Transport Association’s (IATA) 64th Annual General Meeting and World Air Transport Summit in Istanbul, Turkey.

“Extraordinary times call for extraordinary measures. Airlines are an engine for global prosperity and failure amongst them would send shockwaves throughout the world economy,” said IATA Chairman and TAP Portugal CEO Fernando Pinto.

The resolution comes after a recent spike in fuel prices that has led to two-dozen airlines ceasing operations or filing for bankruptcy. “Many more will not survive,” Pinto said.

The declaration made six specific calls to action: Governments must eliminate archaic rules that prevent airlines from restructuring across borders.

In view of existing fees and charges, governments must refrain from imposing multiple and additional punitive taxes and other measures that will only deepen the crisis.

State service providers must invest to modernize air transport infrastructure urgently, eliminating wasteful fuel consumption and emissions.

Business partners, in particular monopoly service providers, must become as efficient as airlines are now. If not, regulators must restrain their appetite with tougher regulation.

Labour unions must refrain from making irresponsible claims and join the effort to secure jobs in aviation and indeed in other industries.

In the interest of the global economy and the flying public, we urge authorities to enforce the integrity of markets so that the cost of energy reflects its true value.

“The airline industry is sending a clear message to governments, partners and labour. We are in crisis. Governments labour and our business partners must understand this. And they must act” said Giovanni Bisignani, IATA Director General and CEO.


http://www.mercopress.com/vernoticia.do ... rmato=HTML

[Cat Driver]

I wonder if this fuel crisis will be beneficial to Airbus with their big people mover?

[nimbostratus]

Yes the price of oil is going up and yes the ticket costs will go up as will everything else, but I don't see it crumbling anything this side of the border. Notice how it was a lot of the marginally managed lower cost american carriers that are running into troubles, laying off and parking planes? Hmmm...

I'll start to worry when Westjet talks about cutting down routes or parking airplanes.

Oh, you mean like with Jetsgo and Canada 3000? That nice long slow progression to bankruptcy? Jetsgo was still in full hire mode one week before closing their doors. A friend of mine was in vacation in Australia and only found out he would be losing his job when he got back to Canada two days before C3 closed their doors.
Yup, expect lots of warning...

[Bubbaganoosh]

Come on Rowdy, are you serious? You think nothing will happen in Canada just 'cause you don't want it to? I'm not trying to incite panic, I just provided a link to an article on a topic. It would be pretty cool if the price of oil didn't affect Canadian carriers, but I think that may not be the case.

The pundits are saying that general aviation is in crisis mode over fuel prices. This is gonna impact all aviation fields including canada's very soon. The coming crash does not seem to deter the sheople from continuing to bury their heads in the sand, or elsewhere

[invertedattitude]

The cost of AVGAS has gone from 1.30/Litre to 1.60/litre overnight here, making the cost of doing business a lot bigger.

[Cat Driver]

Last fall when we put in the order for a new Husky I was thinking that any time I felt like going for a levitation in it it was going to cost about $45.00 an hour for fuel, now it will be about $70.00 an hour .

Will that make any difference in how many hours I fly? Yes.

[Spock]

Until recently the loonie went up in lock step with oil prices and reduced the effect on Canadian airlines. The latest increases in oil have not moved our dollar (it actually went down a little) so we could be feeling some more pain soon.


Spock

Live long and prosper

[Inverted2]

Avgas is pushing $1.80 at some airports now. Thats why you see so many general aviation aircraft for sale. It will soon be like europe where hardly anyone owns a small airplane. Time to take up something cheaper like sailing or birdwatching

[tsgas]

Canada is in for a slow down according to the bank of Canada. If that forecast is correct there will be cut backs to growth plans at AC /WJ as well as layoffs in the rest of the industry..

[sanjet]

I wonder if this fuel crisis will be beneficial to Airbus with their big people mover?

By reducing flights and jamming more people into one airplane, I think yes.

[Cat Driver]

By reducing flights and jamming more people into one airplane, I think yes.

That is what I was thinking.

[hawker driver]

Why don't the airlines just up the price of their tickets? The planes are already full to capacity ( at least the ones I have been on the last 12 months) Add the fuel surcharge so you are able to make a profit. If you still have full planes then good. If you are flying empty then park them. I find it crazy to park aircraft when they are full of pax without first trying to raise ticket prices to a point where you are able to make a profit.

Who is going to drive from New York to Miami for a business meeting and spend 2 days on the road and pay for a hotel room. Raise the price of the airplane by another $200 and it will still be cheaper then driving or the train when you include hotels and your time.

The lowest price I found today was about $289 for a round trip on Air Tran
On Amtrak it takes over 27 hour and costs $256
On the greyhound bus it takes 1 day 7 hour for the trip and costs $180.


The public has been spoiled with low fares and now it is time for them to pay what it really costs to fly.

[Localizer]

Jetsgo? .... Are you trying to compare WJ, AC to Jetsgo? .... 1 cent fares? .... and you wonder why they went bankrupt?

I don't think the Canadian economy is as attached to the American hip like it use to be in the prior years. Somewhere along the line people got the idea to deal outside North America and not get caught in the sink hole the Americans are in. Does this mean we'll avoid a "slow down"? Not completely .. I believe the forcast; that things will slow, but I don't think we'll have to use the nasty "recession" word.

Sub prime morgage lenders should be shot .... or at the very least standing in a cell next to the CEO's of Enron and Worldcom. They knew what they were doing ... but ignored it to gain a quick buck.



Loc ...

[. ._]

Canada is booming in Alberta, Sudbury, and to a lesser extent Newfoundland.

That's my take on the economy. I have no idea what it will do for the aeroplane industry.

-istp

Energy is merely one sector of a national economy. Yes, oil and natural gas have propped up the provinces of which you speak but it is not representative of what the economy is doing.... not sure were Sudbury fits into it. Maybe for mining but you don't hear about the explosive growth in Sudbury that Calgary, Edmonton and Saskatoon has seen.

When your primary trading partner has no money, what do you think it will eventually do to your economy?

Just so ya know, Sudbury has (from what I've heard through the grapevine) about 25 percent of the world's nickel. The rest is mostly in South Africa and Russia. And a few other places. Sudbury also has a bunch of copper mixed in with the ore.

All of the mines are booming, and they can't get the stuff out of the ground fast enough. Sudbury has the lowest vacancy rate in Canada. Around 1 percent last I heard. They can't build houses fast enough here.

Sudbury sells to the world, not just the US.

I made some widgets last week that were getting sent to Russia for one of their mines. As long as the Chinese and Indians want stainless steel sinks and faucets, Sudbury is gonna do well, IMHO.

-istp