You are incorrect in why oil prices have declined.
THe US producers have been adding 4 million barrels per day from shale oil into the market!
This is a significant supply increase. You must look at the supply side of the equation too and not focus simply on demand.
Whilst it is true that demand tapered off slightly in China and the poorer parts of Europe, OPEC has maintained supply, as has the USA.
This is an attempt by OPEC to hurt the Shale oil producers in the USA as they attempt to be oil self sufficient in the next few years.It also affects Russia and Venezuela.
The Weighted price of oil needed by US companies to remain profitable is US $60-62 per barrel.
Hence why OPEC must make a sustained effort over many years to affect the US oil market and keep the price low.
Sub $90 fuel and possibly sub $60 fuel is here to stay for a long time yet.The US shale oil boom won't be going anytime soon.Many are forecasting sub $40 oil for the next ten years.
Airlines benefit the most.
For Qantas the fuel bill for International is approximately $4.8 billion. You can see what a greater than 50% drop in fuel prices does to QF profits.
Combine that with a weaker AUD and less foreign competition and things are very rosy indeed for QF.
The Feb half year results and June full year results will be the proof in the pudding.
I'm happy Alan will get a $10-$15 million dollar bonus even if the 5000 sackings, VR did not do the heavy lifting.
He certainly did not waste a crisis.
That crisis has well and truly passed, as has his pay freeze.
The executive bonuses will be very plump this financial year.