Oil Falls


#1

Oil has been falling to below 120 a barrel in large part due to the stronger dollar. My question is: If oil continues to fall, will airlines get rid of some of their stupid nickel and diming (1st bag charges, charges for drinks)? I remember NWA saying their service fees for issuing frequent flyer tickets was temporary. No one knows if they are really serious about it being temporary but begs me to ask if various fees/charges may be rescinded, if oil continues to drop.


#2

It would surprise me if they did. As long as people pay for these stupid charges, the airlines will keep them.


#3

The “fuel surcharges” may come down or disappear; as for the rest there is NO chance.

When was the last time any “fee” was discontinued once implemented ?


#4

Most airlines have been serious about “decontenting” for a long time now, the fuel prices are what caused them to finally bite the bullet and announce a lot of those things.

The thing you will probably see drop (or stop rising) is base fares.


#5

Oil prices have been falling because China shut down so many factories and forced so many trucks and cars off the road to try to eliminate the pervasive smog covering Beijing. Anybody want to take bets that prices will rise in a couple weeks when China’s demand for oil rises again?


#6

That may play a small part, but I think the rising dollar may be the biggest reason for the drop in oil prices.


#7

Much more importantly, China decreased its gasoline and diesel subsidies, suppressing some of the artificially inflated demand there.


#8

Well, the fuel prices we are seeing now are nothing compared to fuel prices even a year ago.

So, my guess is there’s no chance unless prices return to the late-90/early 2000s’ prices.


#9

Fuel prices or ticket prices? I am assuming you mean fuel prices.


#10

Yeah, fuel prices.


#11

Those fees will drop just as fast as they were implemented. The airlines are a competitive biz.


#12

I hope you are right because I am sick of paying them.


#13

If it were to happen (I still think it’s doubtful), what would probably be like a ripple effect similar to how they were implemented. If UA dropped their baggage fees, US would probably follow.


#14

I was just wondering. What else can US charge for? They must have a whole group of people dedicated to “How can we sneak another fee in.”


#15

Anybody know of any websites where you can see the price of oil/watch it live?


#16

Any financial site should have it. Here’s one I found using Google: bloomberg.com/energy/


#17

They also rescinded their value-added tax exemption, so their manufacturing base is taking a hit. I know we’re moving a fair amount production out of mainland China to Mexico and Malaysia who have better efficiencies once the Chinese subsidies are removed.


#18

Thanks and WOW. When I left Massachusetts about 2 weeks ago oil was at 115, It is down to 109. I always get giddy whenever it is down. So, I have been giddy for the past 2 months.


#19

And here I would have thought being out of Masachusetts alone good and sufficient reason to be giddy! :laughing: http://img61.photobucket.com/albums/v185/MemoryLane/bolt.gif


#20

Well, if I was from New York I would feel even more happy about leaving.