Sea Dog wrote: I am sure, I cannot find it now, that one of the majors is pulling all of its` 727s and three or four 747s.
It was on the news tonite, I cannot remember if it was NBC or CNN.
The same clip said that fare are set to double and in some cases triple.!
I think it was United Airlines.
Company Announces 17 Percent Mainline Domestic Capacity Cuts by 2009 Reducing Fleet by 100 Planes, Eliminating Oldest and Least Fuel-Efficient Aircraft
Announces Executive Changes
Chicago, June 4, 2008 – United Airlines today announced significant fleet, capacity and personnel changes, enabling the company to build a stronger, more competitive business better able to withstand record oil prices and a softening economy.
United will remove a total of 100 aircraft from its mainline fleet, including the 30 previously announced Boeing 737s, and reduce its mainline domestic capacity in the fourth quarter 2008 by 14 percent year over year. The company expects to retire all of its 94 B737s, provided it can work out terms with certain lessors, and six Boeing 747s. Over the 2008 and 2009 period, cumulative mainline domestic capacity will be reduced between 17 percent and 18 percent and cumulative consolidated capacity between 9 percent and 10 percent.
By DAVID KOENIG, AP Business Writer 23 minutes ago
DALLAS - Continental Airlines Inc. said Thursday it is cutting 3,000 jobs and reducing capacity in the fourth quarter by 11 percent, citing record fuel costs that have pushed the airline industry into a "crisis."
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The company also said Chairman and Chief Executive Lawrence Kellner and President Jeff Smisek will not take salaries or incentive pay for the rest of the year.
The job cuts represent about 6.5 percent of the company's work force of 45,000.
Houston-based Continental said it will begin pulling back on flights in September, when departures on its mainline operations will be about 16 percent below the numbers of September 2007. For the year, capacity will fall 11 percent.
CEO Kellner will give up part of a hefty compensation package. In 2007, his salary was $712,500, according to a filing with the Securities and Exchange Commission.
Kellner got a $3.3 million incentive payment, stock and options grants that the company valued at nearly $1.94 million when they were issued in February 2007, and $45,196 in other compensation.
Continental becomes the latest airline to make major cuts as the carriers try to cope with record high fuel prices, which have nearly doubled in the past year and pushed Continental to a loss of $80 million in the first quarter.
Continental officials did not immediately respond to calls for more comment. In a statement, the company said it plans to offer details on flight and destination reductions and eliminations by the end of next week.
Fewer flights will also mean fewer planes. By the end of the second quarter, Continental will operate 375 mainline aircraft and it plans to mothball 67 planes through 2009.
The company said that several fare increases have not been enough to offset the rising cost of fuel. Continental estimates it will spend $2.3 billion more this year than last.
"These actions are among many steps Continental is taking to respond to record-high fuel prices as the industry faces its worst crisis since 9/11," the company said in a statement.
Continental becomes the latest airline to make sharp cutbacks.
On Wednesday, UAL Corp.'s United Airlines, the nation's No. 2 carrier, announced it would cut up to 1,100 more jobs, ground 70 airplanes and drop its coach-only service, named Ted. Two weeks ago, AMR Corp.'s American Airlines, the nation's largest airline, said it would cut capacity 11 percent to 12 percent after the peak summer travel season and probably eliminate thousands of jobs, though it hasn't given a figure.
Some analysts have called on U.S. carriers to shrink about 20 percent to cut spending on fuel and labor. Industry executives say that would also drive up fares as passengers compete for fewer seats in the air. It could also mean the reduction or elimination of service to some smaller airports.
Most of the airlines never really recovered from 9/11. They have been losing money and have been trying to adjust to the lower travel rates, and now to higher fuel prices. We enjoyed VERY low fares for a long time and this is a long overdue change. Southwest was still doing OK last time I looked, but, they have always been more reasonable about their rate structure and flight routes.
I just hope I can survive all the new taxes we'll be hit with in the next 4 years. At least I already bought the RV so a new luxury tax won't hit as hard.
charlie
2006 Toyota Tundra Crew Cab
2003 Skyline Nomad 24ft Fiver
Me and Wife
Maggie the Old English Sheepdog
The Airline industry is in trouble, so is the auto ind. Fuel is going thru the roof, food costs are rising and supply is down. People are loosing jobs. 4 Rv companys shut their doors. Winnie shut one of their plants. GM closed 4 of their SUV and truck plants. Harley sales are down, plant had shut for 2 wks. Realestate is in the dumps. Small business's are falling by the 1000's. Every supplier I deal with is cutting way back. And every small buss owner I speak or deal with is scared, my insurance guy says things are way down, A customer of mine said Dennys is cutting his and his coworkers hours. I could go on and on, but I'm just a "doom and gloomer" what do I know. Some of you on here are so much more opinionated, sorry I mean smarter then me. Keep your #s and stats, look beyond your very sheltered nose's....
You say "Keep your #s and stats, look beyond your very sheltered nose's...." and yet you support your argument with a whole litany of #s and stats. Everyone is entitled to their own opinion. No one is trying to stop you from having yours. But there is no sense in being insulting just because a guy doesn't see it your way.
Everything is cyclic. Prices go up and prices go down. Businesses fail and businesses succeed. One guy loses his job, another guy gets a job. Some of you see the glass half empty...some see the glass half full.
The economic people see the economy as sound and the social people see things as a disaster. For disclosure, I happen to be in the economic camp. My position in life, at least as of today, is sound. I'm sorry that things aren't working out well for some people, but there is nothing I can do to solve their woes. No sense in me worrying about it.
If you start to worry about all of these things that are reported by the masters of doom and gloom, the liberal media, you will end up with a case of paranoia paralysis.
Dave & Mary
Isabel (a cuddly little Boston)
Buddy (The Beast) another Boston
2005 Itasca Suncruiser 35A
2003 Jeep Liberty
If it's listed in the Yellow Pages, the government shouldn't be messing around with it.
Here's the facts on our economy, while you lose money at the casino, polling and trolling other wealthy RVers:
The last two quarters GDP were Up 0.6% & 0.9% respectively. We need two consecutive quarters of negative GDP to call a recession for the country. Economic growth will continue the remainder of 2008 and strenghten in 2009.
The next indicator is unemployment. If millions of people were losing their jobs every month, this would indicate recession. There is no such thing happening. Unemployment is near record lows approximately 5% nationally. That's basically FULL-EMPLOYMENT.
The next indicator would be the stock market. No such evidence there either. Since mid-March the market is Up +10%. When dividends are added in a healthy +10.5%. The bad news bears did their best to gin-up a recession.....it never happened.
Another indicator is inflation. The core consumer indexed inflation is exactly 3.1%. Basically flat.
Interest rates to borrow, are at near record lows. If inflation were out-of-control.....interest rates would be spiralling upward as well.
The pessimism index is hovering near record high levels. This is specifically a sure sign of continued economic growth.
And finally, the news media has accurately called 2 of the last 31 recessions they've called. This one is one of the 31.
Warren Buffett, your mentor said we were in a recession. I'm not saying we are but it has certainly become more difficult for the average person to make ends meet. I will add, many of those having difficulty are the one's who overspent and have lived beyond their means.
Three months are too short to measure the market. It is down 7 1/2% for the year.
You may be correct about the core inflation rate but their are many other factors putting the squeeze on the average consumer. Oil prices being one of them.
Interest rates are indeed low but loans now require larger down payments, higher incomes, more collateral or they are not available. This has shut out many borrowers. I believe this is as it should be.
You say "Keep your #s and stats, look beyond your very sheltered nose's...." and yet you support your argument with a whole litany of #s and stats. Everyone is entitled to their own opinion. No one is trying to stop you from having yours. But there is no sense in being insulting just because a guy doesn't see it your way.
Everything is cyclic. Prices go up and prices go down. Businesses fail and businesses succeed. One guy loses his job, another guy gets a job. Some of you see the glass half empty...some see the glass half full.
The economic people see the economy as sound and the social people see things as a disaster. For disclosure, I happen to be in the economic camp. My position in life, at least as of today, is sound. I'm sorry that things aren't working out well for some people, but there is nothing I can do to solve their woes. No sense in me worrying about it.
If you start to worry about all of these things that are reported by the masters of doom and gloom, the liberal media, you will end up with a case of paranoia paralysis.
Here we go again...
I did not include one stat or # just real world facts. None of which I spoke about is opinion, they are all facts. I am not paranoid, but feel if you can recognize the problem you can hopefully help to fix it or deal with it. None of my remarks were directed at anyone in particular, so don't take it personal. Nor did I state anyone has to worrie, just face the reality of it. None of this is the "way I see it" it is reality.(4 RV companys closing is my OPINION) Nor does it reflect my personal situation, so I am not biased. You can quote Warren buffett all day long and list economic stats, but it dosent change reality for most Americans in the real world. Things are getting real tough out there, between my last posts I just heard FPL ( Fl. elect)is raising their rates 16%, FACT. My statements are based in fact from talking and dealing day to day buss. people out there on the front lines, not some fulltimer or retiree on a fixed income. (prob. gonna get flamed for that) Stats and poles and #s can be manipulated ( glass half full / empty)and viewed differently and take time to catch up with whats happining now. When all the suppliers and buss. I deal with are cutting back, laying off and state their buss. are way off $$, and costs are soaring and people are not spending and loosing their jobs and can't feed their families and put fuel in their cars (all facts)your opinions and your stats don't mean squat. Pay your bills and put food on the table with your economic indicators...
I'm sorry. I do see a lot of changes in the economy. Some bad, some good. It will be a 'weeding out' process where marginal companies close and well established ones survive. Even in a good economy people will be, "loosing their jobs and can't feed their families and put fuel in their cars".
The cheap oil spurned a growth of industries, RV and tourist especially, that were making a lot of money because travel was cheap and the avg joe could take vacations and spend money on frivolous stuff. Not anymore. Good thing? Depends on where you make your money. There are also a bunch of trucking companies out there that will also go belly up because they were relying on cheap fuel for their business. Same for some other industries/companies.
The housing industry, affected by the huge number of poor loans, has taken a nose dive. It will be a while before things go back to the way they should be. In the meantime the logging industry has taken a huge hit, with many lumber mills closing and most others cutting back. The smaller ones will go away, the larger ones will increase their share of the market. When things stabilize only the larger ones will be left (like the gas crunch in the 70's).
Interesting that our own business is thriving. Seems folks are turning back to their hobbies rather than travel. Our suppliers are doing well also. So, please do not extend one industries problems to all.
Some segments of the economy are doing well, others aren't. People in losing sectors will just have to change their jobs to a sector that will do well. It will not be all roses. A lot of tough choices, but, also a lot of opportunity for new industry for those who want to go after it.
D & M wrote: Everything is cyclic. Prices go up and prices go down. Businesses fail and businesses succeed. One guy loses his job, another guy gets a job. Some of you see the glass half empty...some see the glass half full.
There's a lot of truth in this. Back during the oil embargo, gas was expensive, but more importantly, hard to get. I remember the police in my town being ordered to park and turn the engines off for 15 minutes out of every hour and "watch traffic" unless they were sent on a call. The government had to bail out Chrysler, which at that time had one foot in the grave and the other on a banana peel. Interest rates were in the double digits, and I remember people saying that the days of private home ownership were over. One of the financial experts of the time recommended "investing in" non-perishable foods, such as canned meats, vegetables, and so on, which would be worth "at minimum, 10% to 15% more within just a few months". Within a couple of years, all that was forgotten.....until now. Just remember, last year Georgia was in a drought. Next year, they may be dealing with floods. The Great Lakes are way below average depth, but a few years ago we were putting sandbags along the shoreline to keep the water out of the house. Just remember "this too shall pass". ( I hope. )
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& Mary 
I'm not saying we are but it has certainly become more difficult for the average person to make ends meet. I will add, many of those having difficulty are the one's who overspent and have lived beyond their means.
