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	<title>Comments on: Aviation Supply vs. Demand &#8211; The Business Aviation Option</title>
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	<link>http://www.jetwhine.com/2008/09/aviation-supply-vs-demand-the-business-aviation-option/</link>
	<description>Aviation buzz and bold opinion</description>
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		<title>By: Magdalene Aller</title>
		<link>http://www.jetwhine.com/2008/09/aviation-supply-vs-demand-the-business-aviation-option/comment-page-1/#comment-60916</link>
		<dc:creator>Magdalene Aller</dc:creator>
		<pubDate>Sun, 22 Feb 2009 16:53:53 +0000</pubDate>
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		<description>This was discussed last week wasn&#039;t it?</description>
		<content:encoded><![CDATA[<p>This was discussed last week wasn&#8217;t it?</p>
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		<title>By: Paul</title>
		<link>http://www.jetwhine.com/2008/09/aviation-supply-vs-demand-the-business-aviation-option/comment-page-1/#comment-42779</link>
		<dc:creator>Paul</dc:creator>
		<pubDate>Tue, 30 Sep 2008 05:32:03 +0000</pubDate>
		<guid isPermaLink="false">http://www.jetwhine.com/2008/09/aviation-supply-vs-demand-the-business-aviation-option/#comment-42779</guid>
		<description>Good post.  About the only point I&#039;d make is that to be fair to the airlines is that the bag fees, fuel fees, etc that they&#039;ve been loading on over the past several months didn&#039;t keep pace with the inflation in their costs (mostly fuel).

So now that the fuel costs are dropping, it makes *some* sense that they wouldn&#039;t drop those fees.  They raised them, but not enough to cover costs in many cases, betting that the bubble in fuel prices would pop and then settle back down to a spot where the fees make sense.

Don&#039;t get me wrong- they definitely gouge.  It&#039;s what they do.  But they also definitely needed to raise fares at least somewhat in that whole mess.</description>
		<content:encoded><![CDATA[<p>Good post.  About the only point I&#8217;d make is that to be fair to the airlines is that the bag fees, fuel fees, etc that they&#8217;ve been loading on over the past several months didn&#8217;t keep pace with the inflation in their costs (mostly fuel).</p>
<p>So now that the fuel costs are dropping, it makes *some* sense that they wouldn&#8217;t drop those fees.  They raised them, but not enough to cover costs in many cases, betting that the bubble in fuel prices would pop and then settle back down to a spot where the fees make sense.</p>
<p>Don&#8217;t get me wrong- they definitely gouge.  It&#8217;s what they do.  But they also definitely needed to raise fares at least somewhat in that whole mess.</p>
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		<title>By: Bill</title>
		<link>http://www.jetwhine.com/2008/09/aviation-supply-vs-demand-the-business-aviation-option/comment-page-1/#comment-42230</link>
		<dc:creator>Bill</dc:creator>
		<pubDate>Tue, 23 Sep 2008 13:50:55 +0000</pubDate>
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		<description>I thought that demand for light aircraft (especially single engine) was pretty poor right now. I heard on the radio last week or so that Cirrus is laying off workers in it&#039;s Minnesota plant due to lower demand. 

AND...as annoying as it is, I don&#039;t think the airlines are really &quot;gouging&quot; anyone. They are trying every angle they can to break even from the outrageous price of fuel. They&#039;ve simply been afraid to charge the full amount that it would take to make up for the astronomical rise in the price of jet fuel. As an airline employee, who has taken a 40% pay cut to keep my company afloat, who&#039;s &quot;profits&quot; are as rare and fragile as anything you can imagine. This is not the model of gouging. Now, if you want to talk about Exxon-Mobil, I&#039;m with ya!

Talk about supply and demand, that doesn&#039;t explain yesterdays all time historic one day rise in the price of crude oil. That oil commodities market is broken! Did you know that it only takes 5% down to put down options on crude, while it&#039;s 50% for most other commodities? This is why the airlines have been trying hard to get people to understand that it is NOT supply and demand driving oil prices, but speculation. And we&#039;re all paying for it. The commodities traders are making zillions by runnig up the price of oil, and we&#039;re all paying a huge price for it.</description>
		<content:encoded><![CDATA[<p>I thought that demand for light aircraft (especially single engine) was pretty poor right now. I heard on the radio last week or so that Cirrus is laying off workers in it&#8217;s Minnesota plant due to lower demand. </p>
<p>AND&#8230;as annoying as it is, I don&#8217;t think the airlines are really &#8220;gouging&#8221; anyone. They are trying every angle they can to break even from the outrageous price of fuel. They&#8217;ve simply been afraid to charge the full amount that it would take to make up for the astronomical rise in the price of jet fuel. As an airline employee, who has taken a 40% pay cut to keep my company afloat, who&#8217;s &#8220;profits&#8221; are as rare and fragile as anything you can imagine. This is not the model of gouging. Now, if you want to talk about Exxon-Mobil, I&#8217;m with ya!</p>
<p>Talk about supply and demand, that doesn&#8217;t explain yesterdays all time historic one day rise in the price of crude oil. That oil commodities market is broken! Did you know that it only takes 5% down to put down options on crude, while it&#8217;s 50% for most other commodities? This is why the airlines have been trying hard to get people to understand that it is NOT supply and demand driving oil prices, but speculation. And we&#8217;re all paying for it. The commodities traders are making zillions by runnig up the price of oil, and we&#8217;re all paying a huge price for it.</p>
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