Fuel costs predicted to pass $1.30 in months
Jan 4, 2008 | 10:20 am
#1
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Fuel costs predicted to pass $1.30 in months
Fuel costs predicted to pass $1.30 in months
Link: http://www.theglobeandmail.com/servl.../BNStory/Front
In this article AC is mentioned:
"Fuel is Air Canada's biggest operating expense, said spokeswoman Angela Mah. With every $1 (U.S.) a barrel increase in the price of crude, Air Canada's fuel expenses climb by about $28-million (Canadian) on an annualized basis.
I'm not going to hazard a guess as to what airfares will be in [the] future, but will say that the airline industry is highly competitive and we constantly monitor market conditions and make adjustments in the normal course of business, Ms. Mah said."
Link: http://www.theglobeandmail.com/servl.../BNStory/Front
In this article AC is mentioned:
"Fuel is Air Canada's biggest operating expense, said spokeswoman Angela Mah. With every $1 (U.S.) a barrel increase in the price of crude, Air Canada's fuel expenses climb by about $28-million (Canadian) on an annualized basis.
I'm not going to hazard a guess as to what airfares will be in [the] future, but will say that the airline industry is highly competitive and we constantly monitor market conditions and make adjustments in the normal course of business, Ms. Mah said."
Jan 4, 2008 | 11:06 am
#2
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Fuel is still way too cheap. Taking inflation into account, together with efficiency improvements, I understand oil should reach $200/bbl to have the same impact as in the last oil crisis.
Which is probably what's needed (or more) to deal with global warming. And with crowded airports. And with poor airline service.
Which is probably what's needed (or more) to deal with global warming. And with crowded airports. And with poor airline service.
Jan 4, 2008 | 11:16 am
#3
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I did not realize that there was a direct correlation between the price of oil and airline service ... please elaborate 
Fuel is still way too cheap. Taking inflation into account, together with efficiency improvements, I understand oil should reach $200/bbl to have the same impact as in the last oil crisis.
Which is probably what's needed (or more) to deal with global warming. And with crowded airports. And with poor airline service.
Which is probably what's needed (or more) to deal with global warming. And with crowded airports. And with poor airline service.
Jan 4, 2008 | 11:49 am
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Jan 4, 2008 | 12:04 pm
#6
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Perhaps more than you might think. I see serevice improving during recessions and deterioting again when things get better. Hasn't that been our AC experience in the years since they came out of bankruptcy?
Jan 4, 2008 | 12:10 pm
#7
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Well I have not been complaining about AC service so I cannot say. 
Hasn't that been our AC experience in the years since they came out of bankruptcy?
Jan 4, 2008 | 12:42 pm
#8
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Jan 4, 2008 | 12:45 pm
#9
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Noticing and being perturbed by it and complaining are different things ... things change and we change with the times ...
Jan 4, 2008 | 12:53 pm
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Jan 4, 2008 | 1:03 pm
#11
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... a related article ...
Drivers ditching gas guzzlers for fuel-efficient cars amid high oil prices
AC mentioned in:
"The record high price of crude has prompted Air Canada (TSX:AC.B) to increase its transborder fares by two per cent, said spokeswoman Isabelle Arthur.
Fuel costs have been incorporated in the base fare of domestic and transborder flights since 2004. The airline tacks a fuel surcharge onto fares in some international markets, but any changes have to be approved by the Canadian Transportation Agency.
Fuel costs are the airline's largest expense, she noted, and every US$1 per barrel increase in the price of crude costs the country's largest airline C$28 million per year.
"We're just going to keep following and monitoring the fluctuation of oil prices and ensure that we remain competitive in all these markets," Arthur said.
Air Canada's fuel hedging program locked in 45 per cent of its fuel requirements in the third quarter ended Sept. 30, and saved $17 million. At the same time, the stronger Canadian dollar trimmed fuel expenses by $46 million.
Fuel coasts are "a challenge for the entire industry," Air Canada CEO Montie Brewer told analysts in November."
Link: http://canadianpress.google.com/arti...ws31aR-34B9kww
Drivers ditching gas guzzlers for fuel-efficient cars amid high oil prices
AC mentioned in:
"The record high price of crude has prompted Air Canada (TSX:AC.B) to increase its transborder fares by two per cent, said spokeswoman Isabelle Arthur.
Fuel costs have been incorporated in the base fare of domestic and transborder flights since 2004. The airline tacks a fuel surcharge onto fares in some international markets, but any changes have to be approved by the Canadian Transportation Agency.
Fuel costs are the airline's largest expense, she noted, and every US$1 per barrel increase in the price of crude costs the country's largest airline C$28 million per year.
"We're just going to keep following and monitoring the fluctuation of oil prices and ensure that we remain competitive in all these markets," Arthur said.
Air Canada's fuel hedging program locked in 45 per cent of its fuel requirements in the third quarter ended Sept. 30, and saved $17 million. At the same time, the stronger Canadian dollar trimmed fuel expenses by $46 million.
Fuel coasts are "a challenge for the entire industry," Air Canada CEO Montie Brewer told analysts in November."
Link: http://canadianpress.google.com/arti...ws31aR-34B9kww