Wednesday, July 9, 2008

Airlines Fighting Back

The little one who is a frequent flier received this today from an airline. Thought it might be of interest.

An Open Letter to All Airline Customers


Our country is facing a possible sharp economic downturn because of
skyrocketing
oil and fuel prices, but by pulling together, we can all do something
to help now.

For airlines, ultra-expensive fuel means thousands of lost jobs and
severe reductions in air service to both large and small communities.
To the broader economy, oil prices mean slower activity and widespread
economic pain. This pain can be alleviated, and that is why we are
taking the extraordinary step of writing this joint letter to our
customers.

Since high oil prices are partly a response to normal market forces,
the nation needs to focus on increased energy supplies and
conservation. However, there is another side to this story because
normal market forces are being dangerously amplified by poorly
regulated market speculation.

Twenty years ago, 21 percent of oil contracts were purchased by
speculators who trade oil on paper with no intention of ever taking
delivery. Today, oil speculators purchase 66 percent of all oil
futures contracts, and that reflects just the transactions that are
known.

Speculators buy up large amounts of oil and then sell it to each
other again and again. A barrel of oil may trade 20-plus times before
it is delivered and used; the price goes up with each trade and
consumers pick up the final tab. Some market experts estimate that
current prices reflect as much as $30 to $60 per barrel in unnecessary
speculative costs.

Over seventy years ago, Congress established regulations to control
excessive, largely unchecked market speculation and manipulation.
However, over the past two decades, these regulatory limits have been
weakened or removed. We believe that restoring and enforcing these
limits, along with several other modest measures, will provide more
disclosure, transparency and sound market oversight. Together, these
reforms will help cool the over-heated oil market and permit the
economy to prosper.

The nation needs to pull together to reform the oil markets and solve
this growing problem.

We need your help. Get more information and contact Congress by
visiting www.StopOilSpeculationNow.com/sos.


Sincerely,


Robert Fornaro
Chairman, President and CEO
AirTran Airways, Inc.

Bill Ayer
Chairman, President and CEO
Alaska Airlines, Inc.


Gerard J. Arpey
Chairman, President and CEO
American Airlines, Inc.

Lawrence W. Kellner
Chairman and CEO
Continental Airlines, Inc.


Richard Anderson
CEO
Delta Air Lines, Inc.

Mark B. Dunkerley
President and CEO
Hawaiian Airlines, Inc.


Dave Barger
CEO
JetBlue Airways Corporation

Timothy E. Hoeksema
Chairman, President and CEO
Midwest Airlines


Douglas M. Steenland
President and CEO
Northwest Airlines, Inc.

Gary Kelly
Chairman and CEO
Southwest Airlines Co.


Glenn F. Tilton
Chairman, President and CEO
United Airlines, Inc.

Douglas Parker
Chairman and CEO
US Airways Group, Inc.

1 comment:

adam hartung said...

The leaders of the “major” airlines simply have had no idea how to ever make money in a deregulated environment. Finger pointing is the last defense of the incompetent. We can only expect things to worsen for all of us dependent upon air carriers. read more at http://www.ThePHoenixPrinciple.com