Business travelers over an oil barrel
David Grossman, writing in USAToday.com, says higher jet fuel prices combined with an economic downturn will be good news neither for the airlines nor passengers.
He writes,
A confluence of several factors increases the likelihood that oil prices will stabilize at current levels or worse, go higher still. According to the U.S. Department of Energy (DOE) oil consumption will grow by more than 40% over the next quarter century fueled largely by emerging giant economies in China, India and other rapidly industrializing nations. Refineries around the world are already operating at or near capacity. Even if refiners can boost future capacity, it is unlikely they can keep pace with demand.
The rest of the article discussing possible solutions to this higher fuel/lower demand conumdrum. None of the alternatives sound particluarly pleasant. However, as the legacy airlines cut their demand, the low cost carriers will move to fill the transportation gap. And they will probably make money.
Guess there may be another silver lining to this problem — more efficient airlines in terms of passenger service and costs — besides simply more efficient use of fuel.
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