As the world struggles with oil costs, aviation is being hit hard. With airline closures becoming more commonplace, seems we need to look at what the future has in store. This year saw the closure of airlines including ATA, Aloha Airline and most recently Zoom airlines. The main plight for these airlines has been the rising fuel costs. The business models for running an airline are just not set up to withstand this type of high pricing in fuel. According to a recent IATA study, the world's airlines will lose almost $10 billion USD by 2010 because of higher fuel prices. As per a recent Globe and Mail article dated September 3, 2008 (http://www.theglobeandmail.com/servlet/story/LAC.20080903.RPLANES03/TPStory/Business), “ Research Capital analyst Jacques Kavafian said Air Canada saves $25-million every time the barrel of oil decreases by a dollar. Westjet, he said saves $7-million.”

Let’s be honest, airlines need to recoup the loss generated by the rising cost of fuel, by either cutting jobs, or passing the cost on to the end user. So, can we really ask why airlines are thinking outside the box, and finding new ways to recover this lost income and stay afloat? Some have come up with charging extra for each bag you carry, or like Air Canada Jazz has recently done, remove life jackets from their flights. This brings the payload or weight onboard down, which decreases fuel burn. I read a blog (http://www.fly.co.uk/blog/126.html) which discusses what this actual signifies in weight. The blogger, Gareth Robinson, states that the Dash-8, which has 50 seats “saves 55lbs per flight” with the removal of life jackets. So, he did a quick calculation, and came to the conclusion that “they fly 880 flights per day. So, taking my rough math into equation here – and remember I’m a blogger – not a counter – that would be 22 tonnes saved per day that doesn’t have to be lugged all over the Americas. That’s 8,000 tonnes saved per year”. If you equate this to a saving in fuel consumption, it seems like a pretty straightforward decision, considering that Jazz flies mostly over land.  Hopefully the fuel costs will go back down to normal levels, allowing airlines to re-coop and translate this recovery to their passengers. The airlines aren’t out there with “hands in your pocket”, most are just trying to stay afloat during a period of uncertainty with fuel. And until greener fuels are found, we depend on oil to keep this industry running, which means we are at the mercy of fuel costs. Oil companies are also at the mercy of oil cartels, which are comprised of the oil producing countries. Let’s just say that there is a cause effect relationship, and the airlines are not out there trying to drive you nuts.
 

That’s it for now, I’m wheel’s up!