Sunday June 08, 2008

Two major Chinese airlines including China Southern Airlines to cut flights over jet fuel costs

channelnewsasia.com :

Two major Chinese airlines plan to cut the number of international flights they offer due to spiralling fuel costs, the carriers said Tuesday [3 Jun 2008]. China Southern Airlines, the country's top carrier in terms of fleet size, said it planned to suspend an unspecified number of flights to cut costs. The state news agency Xinhua reported that the airline would cut flights from southern China's Guangzhou to Ho Chi Minh, Vietnam and Angkor, Cambodia from June to September [2008]. The company will also offer fewer flights between Guangzhou and Hong Kong, and Singapore during that same period and services between Beijing and Seoul will also be affected. China Eastern Airlines, a major carrier based in Shanghai, said it had similar plans as China Southern.

In addition, iht.com reports that :

Continental Airlines is the latest carrier to announce cuts, saying Thursday [5 Jun 2008] that it would ground 67 planes, cutting 3,000 jobs. In all, airlines in the United States have announced plans since March to park more than 200 aircraft, from regional jets to Boeing 747s, representing more than 10% of the major airlines' fleets. As they cut costs, they are also raising ticket prices and adding surcharges and fees to help offset soaring fuel costs. This year, half a dozen smaller carriers have gone out of business or filed for bankruptcy. Jamie Baker, an analyst with JPMorgan, said airlines could lose a collective $7.2 billion this year if fuel prices stay at current levels or rise further.

- For now the airlines are billing it as a temporary measure due to jet fuel costs, and the intention is to bring back these flights when fuel prices come down. But peakoilers know better - there is nothing temporary about Peak Oil and there is nothing temporary about sky-high oil prices. The peak for conventional light sweet crude oil is already in the past - we reached it back in May 2005. Peak Oil is a permanent phenomenon and high oil prices are here to stay. We may have reached the era of Peak Airlines.

See also :

1. British Airways to ground part of its fleet over rising fuel cost
2. Airlines tremble at prospect of $100 oil

Updated :

1. Peak Oil, Peak Airlines - as oil prices go up, airlines cut flights and jobs

(2008-06-08 22:27:04 SGT) [Energy] Permalink

Most popular blog postings on lowem.log :

1. Singapore SIBOR interest rates fall to 1.5%, lowest since Dec 2004
2. Singapore SIBOR rate falls to 1.31%, lowest since Nov 2004
3. Live spot gold price quotes chart on COMEX
4. Fuel prices seen stoking Malaysia inflation in 2008
5. 2010 Honda Civic Hybrid preliminary specifications released
6. Singapore SIBOR rate fell to 1.25% in Apr 2008, lowest since Aug 2004
7. Malaysia inflation rate jumps to 7.7% in Jun 2008, a 26-year record high
8. Singapore : electricity tariffs to increase April 2008 on rising oil prices

Featured articles on lowem.log :

1. ABC Guide to Beating Inflation in Singapore and Elsewhere
2. Singapore inflation rate hits new 26-year high of 7.5% in Apr 2008
3. Singapore : Bread price inflation continues
4. 2010 Honda Civic Hybrid preliminary specifications released
5. Peakoiler buys 2008 Honda Civic Hybrid FD3
6. How to insert currency exchange rates into Google Spreadsheets
7. Singapore SIBOR rate falls to 0.94% in Nov 2008, lowest since Jul 2004
8. Singapore : Inflation erodes away bank savings