Fuel
Joined: May 2008
Posts: 507
Likes: 43
From: US
Pass the costs along
Wait for the market to stabilize
Decide at that stage if you need to park jets. The only issue you have at that point is the relative cost of fixed capital assets. Everyone in the industry will face this including your competitors. Everyone in the world will face inflation and higher transportation costs.
If you choose not to pass the costs of materials along, no matter what sector you're in, your company will not survive in the long run.
The concern is operating as efficiently as possible. This will give you an advantage over competitors. Just like in poker, whether you win or lose depends on how you play your cards.
Wait for the market to stabilize
Decide at that stage if you need to park jets. The only issue you have at that point is the relative cost of fixed capital assets. Everyone in the industry will face this including your competitors. Everyone in the world will face inflation and higher transportation costs.
If you choose not to pass the costs of materials along, no matter what sector you're in, your company will not survive in the long run.
The concern is operating as efficiently as possible. This will give you an advantage over competitors. Just like in poker, whether you win or lose depends on how you play your cards.
Joined: Jul 2005
Posts: 1,117
Likes: 0
From: Hong Kong
Here is a prediction of the oil bubble to burst by end 2008 http://www.news.com.au/business/stor...98-462,00.html
Joined: Nov 2000
Posts: 395
Likes: 3
From: On a foreign shore trying a new wine diet. So far, I've lost 3days!
Here's a prediction of the oil prices made back in 2005!!!
http://www.forbes.com/2005/01/10/cx_da_0110doomoil.html
On the beach
http://www.forbes.com/2005/01/10/cx_da_0110doomoil.html
On the beach
Joined: Mar 2007
Posts: 22
Likes: 0
From: HK
If the cost of fuel is so important maybe it would be cost affective to show the people who have influence on the amount we use some good will.
Whilst pilot salaries amount to a small percentage of costs a small change in fuel burn could amount to a lot.
Whilst pilot salaries amount to a small percentage of costs a small change in fuel burn could amount to a lot.
