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Posted
May 06 2008, 06:14 PM
by
Charley Blaine
Rating:
Money Blog: Top Stocks Blog - MSN Money
I'm really not here to scare you, but, get ready, I AM going to scare you.
The news got lots of attention: Goldman Sachs analyst Arjun Murti predicted Tuesday that the price of crude oil could hit $150 to $200 a barrel in six to 24 months. (Here's one discussion of the report. Another is here.)
Crude oil in New York promptly jumped to as high as $122.73 a barrel in New York before closing at $121.84. And, as I write this, crude was trading slightly lower in electronic trading. But it also had the perverse effect of pushing the stock market higher. Indeed, the biggest winners in Tuesday's stock market were oil and gas production companies, natural gas companies. (But not refiners; crude oil is rising faster than refiners can push their prices up.)
So, if crude jumps to $150 or $200, how does that translate into prices at the gas pump. Here's the scary part.
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Posted
Apr 16 2009, 01:16 PM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
United Airlines announced that it's following the lead of sister airlines and will now charge obese passengers for a second seat in certain situations. The Wall Street Journal's The Middle Seat Terminal blog reports that the airline is responding to almost 700 complaints from passengers who were squished by fat seatmates.
The Terminal asks a good question: Is this fair to overweight people?
Here are the particulars of the new policy: (Actually, take time to read the entire policy because many news and blog reports about it were inaccurate.):
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Posted
Jul 23 2009, 03:44 PM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
Here's the strangest proof we've seen to date that the airline industry ain't what it used to be. According to the Los Angeles Times, airline pilots and other employees are living in a collection of 100 campers and RVs in Parking Lot B of Los Angeles International Airport, less than 3,500 feet from the south runway.
It has the feel of a modern-day shantytown, replete with the sounds and smell of jets coming in for a landing at the nation's third busiest airport. Parking the motor home at a Wal-Mart sounds glamorous compared with this.
The LA Times reports:
It is a drab expanse of crumbling gray asphalt, approach lights, chain-link fencing and rows of beige and white RVs -- some battered, others grand. A splash of color comes from the red and white blooms of about a dozen rose bushes along the colony's northern edge.
But it's a steal. Rent for each space is only $60 a month.
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Posted
Jul 10 2008, 03:57 PM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
Note to future self: If we're traveling on US Airways after Nov. 1, take a book. That's when the downsizing airline will stop showing movies on domestic flights. The decision to end in-flight films shouldn't be a surprise. The video systems weigh 500 pounds, a lot of extra weight -- particularly when they aren't paying their freight. Fewer and fewer people have been willing to shell out $5 for the headsets.
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Posted
Oct 29 2008, 02:10 PM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
Say goodbye to another airline, now that the Justice Department has approved Delta's $2.6 billion purchase of Northwest Airlines. And that's not a bad thing, given the miserable state of the airline industry these days.
The merger will produce the world's largest airline, which will continue to be called Delta. Northwest shareholders will get 1.25 Delta shares for each share they own in the all-stock deal.
Even though the companies have been meticulously planning the marriage, it'll still take up to three years to integrate them. There will be a bit of culture clash at first, particularly since Delta is mostly non-union (except for its pilots) and Northwest is unionized.
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Posted
Mar 11 2008, 08:53 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Several companies in the airline and auto sectors could face bankruptcy this year with American Airlines and Ford at the head of the list
American Airlines dropped 10% yesterday to hit $10.20. The shares have not been at that level since 2004. American lost money three of the last five years. It had a small net profit in 2007 of just over $500 million on $22.9 billion in revenue. The margin is razor thin.
In 2007, American also had interest expense of over $900 million. Long-term debt is about $9.4 billion.
In an industry which is as well-known for its bankruptcies as it is for its bad food, 2008 is shaping up as a truly awful year. Fuel prices are rocketing as oil passes above $107 a barrel. The recession is likely to put a drag on passengers, both business and pleasure. The $500 million that American made last year could turn to a loss of several billion in the blink of an eye.
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Posted
Apr 10 2008, 01:10 PM
by
Robert Walberg
Rating:
Money Blog: Top Stocks Blog - MSN Money
In the words of Ricky Ricardo, the CEO of AMR Corp. has "some 'splainin' to do." Whether you believe the parent of American Airlines is merely the victim of a reactionary FAA or not, the fact of the matter is that management had 18 months to comply with the FAA's request regarding the wiring on the MD-80s and failed to act.
Yes, the planes have been flying safely for years, and yes, the FAA is likely overreacting to criticism from Congress after it was made to look inept in the Southwest Airlines debacle a few weeks back. Nevertheless, the single most important task of any airline CEO is public safety. Failing to address a potential safety risk merely because you didn't think you would get caught is a miserable excuse.
Maybe AMR's management simply thought the cost of fixing the problem would be too high -- especially since the FAA really hadn't checked that carefully in the past. With jet fuel costs skyrocketing and the economy slumping, spending more money on maintenance that didn't seem necessary had to be a tough pill to swallow. So AMR chose not to take its medicine in small manageable doses over the past 18 months in hopes that the problem would just go unnoticed.
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Posted
Jun 22 2009, 12:09 PM
by
Karen Datko
Rating:
Money Blog: Smart Spending Blog - MSN Money
That $29 or $39 one-way airfare sounds great, but before you buy, hold the phone until you've added in all the airline fees. Suddenly that ticket isn't such a great deal. (And don't buy it over the phone. That too will cost you extra.)
Airline fees are here to stay, no matter how confusing or annoying they are, USA Today reports. The story also says:
Sorting out the airlines' fees can be a time-consuming task. It took a week for a USA Today reporter -- who, unlike most consumers, was assisted by airline public relations staff -- to compile 28 different types of fees charged by 14 major airlines.
Holy buckets. Once you look at what reporter Gary Stoller compiled, you'll appreciate why it was a huge undertaking. Gary deserves our gratitude. (Of course, these fees are subject to change.)
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Posted
Jun 23 2009, 09:50 AM
by
James Dlugosch
Rating:
Money Blog: Top Stocks Blog - MSN Money
A funny thing happened on the way to Boeing's dominance of the aircraft-manufacturing industry…
Its new jet won't fly.
Tuesday, the airline maker announced that the maiden voyage of its 787 Dreamliner would be pushed back due to concerns about stress on its wings.
That doesn't sound good. Boeing (BA) needs more time to reinforce the wings to address the concern. Perhaps they are being overly cautious, but would you want to fly on this oft-delayed aircraft?
More critically for Boeing shareholders, would you want to buy one?
Seriously, at this late date, one would think that the designers and builders would have all factors accounted for. But Boeing's strategy with this plane of contracting out parts to suppliers and shipping them to Everett, Wash., for assembly seems to have created a planeload of problems.
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Posted
Feb 23 2009, 07:33 AM
by
Kim Peterson
Rating:
Money Blog: Top Stocks Blog - MSN Money
 Seven months after it began charging customers $2 for sodas, coffee and other beverages, US Airways (LCC) is reversing its policy and will now give out drinks for free.
What happened? Well, in this airline's case, it was more about what didn't happen.
First, other airlines didn't follow US Airways' lead. Sure, they were fine with fees for checking bags and other things, but they drew the line when it came to charging for drinks.
Second, passengers didn't accept the fee. It became about more than a soda. It was a symbol of the gotcha nickel-and-dime game that some airlines -- with the exception of Southwest (LUV) -- are playing with customers.
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