Oil price crash!!

[Squeegee Longtail]

Well, it's half what it was. Can we all go flying again?

[dont overfil]

I'm still coming next year again. I'll bring my overdraft with me.
DO.

[A and C]

The drop in the cost of oil will make flying cheaper but this will be balanced against the rising cost of aircraft parts.

I am very pleased that I stuck my neck out and got my spare avionics boxes in when the $ worth 50p.

[Fuji Abound]

Brent Crude since the peak is down by 45% today, but in the same period sterling is down against the dollar by nearly 13%. This translates into Brent having fallen by 39% from its peak so you might expect prices at the pumps to have fallen by nearly 40% - if only the falls were passed on as qiuckly as the rises, and if the majority of the cost of fuel wasnt made up of tax and VAT.

Never the less BA's fuel bill setting aside advanced contracts has nearly halfed since its peak assuming they bought in sterling - which they dont, so it might be a little better still.

Perhaps if they make it through the next few months we might see a few more airlines hanging on. :)

(A and C - not sure you are quite ahead yet, the market is now in such a state I reckon you will get at least a 15% discount on anything avionic which should compensate for sterling going down the drain)

[julian_storey]

The thieving oil companies are quick to pass on rises in the cost of a barrel of crude. They are strangely, less prompt at passing on any reduction.

[Pilotdom]

It's great that oil has fallen for the airlines.

However, the next problem will passenger numbers and keeping those at current levels. Consumer confidence will be at an all time low with the constant media coverage of the so called Credit Crunch, and may put people off a discretionary trip abroad.

[A and C]

You're quite right about most of the avionics but I got a good discount & the prices of the top quality kit has a tendency to stay firm.

[Squeegee Longtail]

"Your pound only buys you $1.69"
I have no pounds. Do you want to talk about my euros and your $?
It's not $1.70 like a couple of months ago addmitedly, but $1.45 still doesn't give the greenback world "must have" status, does it?
Watch the markets closely, the $ WILL be sliding again in the near future.

Back to oil - this forum was FULL of doom and gloom when the barrel price got to $120+. Now come on, lets see equal amounts of optimism as finally there is some good news for aviation! :)

[Fuji Abound]

Well the euro dollar decline is about the same as the dollar sterling decline - 14% in fact over the same period so however you do the maths the fall in Brent quoted in dollars against the Euro or Sterling is about the same.

As we all know Brent has fallen because the world is sliding (has slide) into recession. So whilst the fall is potentially good news which would indeed be cause for celebration the flip side of the coin is we may all have a great deal less in our pockets to spend.

.. .. .. go figure.