Airlines Unite! Act now!
07-10-2008, 06:49 AM
#1
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Airlines Unite! Act now!
Its about time for this.
An Open letter to All Airline Customers:
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. Visit www.StopOilSpeculationNow.com.
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
Chairman, President and CEO
AirTran Airways
Bill Ayer
Chairman, President and CEO
Alaska Airlines, Inc.
Gerard J. Arpey
Chairman, President and CEO
American Airlines, Inc.
Lawrence W. Kellner
Chairman and CEO
Continental Airlines, Inc.
Richard Anderson
CEO
Delta Air Lines, Inc.
Mark B. Dunkerley
President and CEO
Hawaiian Airlines, Inc.
Dave Barger
CEO
JetBlue Airways Corporation
Timothy E. Hoeksema
Chairman, President and CEO
Midwest Airlines
Douglas M. Steenland
President and CEO
Northwest Airlines, Inc.
Gary Kelly
Chairman and CEO
Southwest Airlines Co.
Glenn F. Tilton
Chairman, President and CEO
United Airlines, Inc.
Douglas Parker
Chairman and CEO
US Airways Group, Inc
An Open letter to All Airline Customers:
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. Visit www.StopOilSpeculationNow.com.
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
Chairman, President and CEO
AirTran Airways
Bill Ayer
Chairman, President and CEO
Alaska Airlines, Inc.
Gerard J. Arpey
Chairman, President and CEO
American Airlines, Inc.
Lawrence W. Kellner
Chairman and CEO
Continental Airlines, Inc.
Richard Anderson
CEO
Delta Air Lines, Inc.
Mark B. Dunkerley
President and CEO
Hawaiian Airlines, Inc.
Dave Barger
CEO
JetBlue Airways Corporation
Timothy E. Hoeksema
Chairman, President and CEO
Midwest Airlines
Douglas M. Steenland
President and CEO
Northwest Airlines, Inc.
Gary Kelly
Chairman and CEO
Southwest Airlines Co.
Glenn F. Tilton
Chairman, President and CEO
United Airlines, Inc.
Douglas Parker
Chairman and CEO
US Airways Group, Inc
07-10-2008, 07:07 AM
#2
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Joined APC: Jul 2007
Position: 744 CA
Posts: 4,772
Interesting that they didnt get any CEO's of Regional/Jet carriers to be signatories....
However, Its about time... the industry as a WHOLE needs to press this and other issues until something is done.
However, Its about time... the industry as a WHOLE needs to press this and other issues until something is done.
07-10-2008, 07:16 AM
#3
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Joined APC: Nov 2006
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Posts: 937
Amen brother! I went to the site, very user friendly, and sent the letters to my senators and congressman. It took two minutes, now if everyone we know could do that, maybe things will get better.
07-10-2008, 07:50 AM
#4
Gets Weekends Off
Joined APC: Sep 2007
Posts: 207
Unfortunately, I've come to understand that FORM letters do little, if anything, to prompt action by an elected official. The flip-side of that is sending personal, hand-written, mail. That type of mail is generally read by the elected official in question. BTW, all of them are questionable/suspect. 
I did, however, have a FORM letter sent to my Congressmen/women because I'm too darn lazy to write them a personal letter. 
I did, however, have a FORM letter sent to my Congressmen/women because I'm too darn lazy to write them a personal letter.
07-10-2008, 08:13 AM
#7
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Joined APC: Oct 2006
Position: B767 Capt.
Posts: 616
I'll admit that I was surprised to see this letter from Airline mgmt. However, I am in agreement with them and promptly fired off the letter.
But there is something else WE all must do. Follow this up with your elected officials by monitoring their activity on this subject and send another e-mail with you approval of their action. Or if necessary send an e-mail stating your displeasure and that this will weigh heavily on your decision should they be seeking re-election. If feel that if enough people would respond in that manner they would take notice.
Too political? Sorry but this is affecting everyone.
But there is something else WE all must do. Follow this up with your elected officials by monitoring their activity on this subject and send another e-mail with you approval of their action. Or if necessary send an e-mail stating your displeasure and that this will weigh heavily on your decision should they be seeking re-election. If feel that if enough people would respond in that manner they would take notice.
Too political? Sorry but this is affecting everyone.
07-10-2008, 08:18 AM
#8
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Joined APC: Aug 2006
Position: 737-FO
Posts: 114
There is speculation, and, what I believe, is the root cause OF speculation, or at least a big part of traders/hedge funds speculating on commodities:
Record oil prices tied to dollar depreciation
And secondly,
Oil Prices Up, Dollar Down - Coincidence?
It's all about the $$$$$$$$$$$$
Record oil prices tied to dollar depreciation
And secondly,
Oil Prices Up, Dollar Down - Coincidence?
It's all about the $$$$$$$$$$$$
07-10-2008, 08:27 AM
#9
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Joined APC: May 2005
Position: Guppy Commander
Posts: 4,412
its not any single 1 cause. Its a number of reasons.
Speculation = 30-40 dollars of the rise
dollar value = increased oil cost
supply and demand = increased oil cost
Speculation is easily the cause for 30-40 dollars extra cost on the price of a barrel of oil. Its also the easiest and quickest fix while the economy and industry have time to adjust.
There is a problem when even the Saudis are saying the price of a barrel of oil is over inflated.
Speculation = 30-40 dollars of the rise
dollar value = increased oil cost
supply and demand = increased oil cost
Speculation is easily the cause for 30-40 dollars extra cost on the price of a barrel of oil. Its also the easiest and quickest fix while the economy and industry have time to adjust.
There is a problem when even the Saudis are saying the price of a barrel of oil is over inflated.
07-10-2008, 08:31 AM
#10
Underboob King
Joined APC: May 2005
Position: Guppy Commander
Posts: 4,412
Cutting speculation is the quickest "fix" in the short term. It would almost certainly bring the cost down by 30-40 bucks a barrel. That would allow the industry time to breath and adjust. Fuel jumping 100% is killing the airlines and the economy.
The problem is Speculation, Supply & Demand, and the value of the dollar.
This should be an eye opener for the entire country this is a problem. We need to be investing big time into alternative fuels and energy so we arent held hostage in the future when there really is a Shortage. This country has the technology to get find alternatives and ween ourselves off of foreign oil. We have the largest Coal shale deposits in the world and that can be converted into oil. We have oil here we arent drilling for and again we have alternative fuels on the horizon. There is already a synthetic Jet fuel out that should be being used or at least researched further.
The problem is Speculation, Supply & Demand, and the value of the dollar.
This should be an eye opener for the entire country this is a problem. We need to be investing big time into alternative fuels and energy so we arent held hostage in the future when there really is a Shortage. This country has the technology to get find alternatives and ween ourselves off of foreign oil. We have the largest Coal shale deposits in the world and that can be converted into oil. We have oil here we arent drilling for and again we have alternative fuels on the horizon. There is already a synthetic Jet fuel out that should be being used or at least researched further.
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