The Price of Oil
While the price of oil is a factor in any economic cycle it is only one factor.
The price of oil was very high 18 months ago.Aircraft were full and the Australian economy was in overdrive.Now the price has fallen the economy is still ok.
The world does not come to a standstill if the price of oil goes up.The other factors include debt,interest rates and the unemployment rate.Price is determined by demand-China and India provided the catalyst
If wages keep pace with the increase in oil prices and everybody has a job the economy continues to chug along.
When you have very large aircraft that need to be filled then you have problems in a downturn.
Smaller aircraft provide greater flexibility in all economic weather.
Qantas has made some monumental blunders.
The Tripler should have been bought.
The fleet should not have been allowed to age as it has.
Bio Fuels are on the way
Older aircraft are less fuel efficient and when the price of oil goes up it hurts more when the fleet is older.
Qantas will survive but the short termism needs to go.
The Qantas "boys club" has been decimated and now the real work begins