FlyerTalk Forums - View Single Post - American Airlines In Talks With Continental
Old Apr 25, 2008, 7:49 pm
  #39  
ByrdluvsAWACO
 
Join Date: Oct 2001
Location: PHX/SFO/LAX
Programs: AA-EXP (1.7MM), BA-Slvr, HH-Diamond
Posts: 7,784
BUY AN OIL COMPANY.


Show me one airline that can afford to buy an oil company.

IF CO owned an oil company it doesn't pay market rate for fuel. So what if it is $120 a barrel for oil. CO gets it jet fuel at cost.
Please explain how CO would buy this fuel at cost at intl destinations? No oil company owns a distribution network that large.

CO gets it jet fuel at cost.
At cost isn't to far below what every other airline pays. Why do you think refiners are taking some plants offline. Their margins are razor thin even with high oil.

In fact under those circumstances CO would want high fuel prices because all other airlines suffer while they don't !
Two flaws..

1. Why would CO want to keep their costs high?
2. CO would be paying just about the same for fuel.
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