Sunday, June 15, 2008

Grounded Airlines


Soaring fuel costs are still suffocating the U.S. aviation industry, too. Here’s the news from commercial airliners, just in the last 24 hours:
Nearly every U.S. airliner bumped up fuel surcharges by $20 per round trip, the 19th such increase this year.
~U.S. Airways is cutting 1,700 more jobs.
~U.S. Air will cut capacity by up to 8% and retire at least 10 planes.
~United Airlines and U.S. Airways both announced a $15 fee for one checked bag, $25 for the second. That matches American Air’s baggage policy unveiled three weeks ago.
~U.S. Airways won’t even give you water for free anymore… nonalcoholic drinks now cost $2. Anything with booze in it costs $7.
“Almost every flight in the skies these days loses money,” notes Byron King. “It does not matter how few peanuts they put in the little bags. The cost of jet fuel is soaring… it’s up 92% in the last 12 months.”
“At the very least, 20% of airline seats are going to go away within the next six months.The airplanes of the world are starting to get grounded. The skies of the future will not be so crowded. Eventually, the burden of fuel costs will have to shift to the ultimate consumer, the passenger. You want to fly? You have to pay.”

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