1. Crude Thinking.
- Author
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Anselmo, Joseph C. and Mecham, Michael
- Subjects
- *
PETROLEUM product sales & prices , *AIRCRAFT fuels , *AIRLINE industry - Abstract
The article reports on the concerns of aerospace analysts that the staggering oil prices will choke off demand for new aircraft. According to a report from Credit Suisse aerospace analysts, oil at current levels has become a major headwind for airlines that they are no longer looking to get new jets to improve efficiency. It is stated that airlines are cutting capacity and eliminating unprofitable routes. American Airlines has announced a 12% reduction in its domestic service, while Boeing is constraining capacity because of high fuel prices.
- Published
- 2008