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Airlines Update
By JD Bluefield | March 23, 2008
Honolulu Advertiser has now stated that, Aloha Airlines is now up for sale. Financial backers have pulled out further support and Aloha is now in talks with possible buyers. Aloha repeatedly cited the increasing fuel costs as a reason for failing. Airlines hedge fuel cost, which I explained in Beat Inflation, but I’m positive they never planned on battling the $40/barrel increase of 2007. With oil hanging at around $100/barrel, many airlines will soon, if not currently, bleed red ink.
How will the higher fuel costs affect you?
- First, if you haven’t already heard, Delta, United and US Airways will only allow one free check-in item and charge $25/additional bag. With higher fuel cost, every extra pound means more fuel burned, so time to get rid of that crap. So time to start packing light (clear out your luggage like a wallet) and wash clothes at you destination. You really don’t need a completely new outfit everyday.
- Second, if you have any future travel plans, expect the “fuel surcharge” on your next airline ticket to probably increase. Buy those tickets as early in advance as possible to get the best deals.
- Third, pay-meals are here to stay. I always buy a couple sandwiches prior to arriving at the airport to avoid these marked up and unsatisfying meals.
- Last, make sure you keep track of those precious miles because two separate mergers are already speculated to occur between Delta/Northwestern and United/Continental. No doubt spurned by rising fuel prices and sliming profit margins.
With Americans getting fatter than ever, will we eventually be stepping on that check-in counter scale ourselves? I can’t wait for that day.
Topics: Travel |
One Response to “Airlines Update”
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March 23rd, 2008 at 12:34 pm
I hope Aloha can survive this crisis. Go airlines has only one goal, kill off Aloha and Hawaiian. Then they can control the price of travel between the islands. Before Aloha, Hawaiian control the price of travel between the islands. The problem with Aloha and Hawaiian is that they are into more than inter-island travel. That cost cannot be diminished so they can concentrate on inter-island competition. Competition is healthy, but let’s hope Aloha can survive.