When will it end? A new survey shows that rising fuel prices have impacted general avaition. Pilots who own and rent aircraft have significantly curtailed the amount of flying they’re doing, it found.
Conducted by the Aircraft Owners and Pilots Association, a Washington trade group, the survey found that three out of four pilots have cut back the amount of flying they do. Forty percent said have cut back 50 percent or more.
Aircraft owners are feeling the impact more than those who rent planes, it appears: 72 percent of the owners have cut back flying compared to 67 percent of the renters who have.
A cut in flying impacts flight schools, which make a significant portion of their income from aircraft rentals, and fixed base operators, which sells fuel. That means fewer taxes and fuel flowage fees going into local communities. Rising fuel prices can also impact public service flying, such as medical airlift operations, which rely on volunteers.
When it’s hectic in the newsroom, sometimes it’s fun to dream a bit about an afternoon hanging out with a good book and a glass of wine. Or spending time sightseeing in Barcelona. Ah, retirement — and high hopes for my 401(K).
New hires at Boeing will work under a retirement plan different from existing employees. Those not represented by a union who start work at Boeing after Jan. 1 will have a defined benefit savings plan. Under it, Boeing will contribute an amount equal to 3-to-5 percent of a new employee’s pay regardless of whether the employee contributes to the plan. There also is a matching plan. Boeing has negotiated a similar new hire program with several of its unions. It also plans to discuss the issue in current talks with the Machinists union.
Here’s a little nugget from Monday’s congressional oil speculation hearings that slipped under the radar. If that one comes to pass, I’ll be the guy doing the Hustle down the middle of Douglas in celebration.
All kidding aside, there’s some good information in this piece as we laymen try to figure out who, if anyone, is telling us the truth on the oil issue.
Which leads me to a pet peeve on all the oil reporting, both locally and nationally: Why do reporters call investment bankers and oil industry officials to get the latest on gas prices?
Maybe it’s just me, but I’m not thinking that Goldman Sachs and Morgan Stanley are going to give me the straight scoop on the day in the oil patch.
The passing of time is not easing Wachovia Bank’s pain.
First, it reports billions in losses and write downs from deteriorating credit and housing markets and from its involvement in the subprime mess. Then it ousts its long-time chief executive Ken Thompson.
Now comes word that the bank is consulting with Goldman Sachs on its loan portfolio.
All the while rumors of a takeover persist.
You can argue that Wachovia brought all this on itself.But think about all the employees — including those who came over from the Golden West acquisition, which brought Wachovia to Wichita a year or so ago — who put everything they can into their work and company every day, trying to do the right thing, and hearing a string of bad news almost every day.
Talk about a bummer.
I’m one of those Gen Xers who doesn’t balance my checkbook. I know this is inconceivable to some people. Like, say, my parents for starters.
I keep an eye on my account by checking it online fairly frequently. After going on a crazy Monday night spending spree, I figured I better check it today. So, in the haze of what for me was a very early hour this morning, I thought I saw that my account was down by about $825 with no explanation. Trust me, I’m not stimulating the economy that much.
A nice gal at my bank explained that the bank’s Internet system was having technical difficulties. “Were you not aware of that?” she asked. Ah, duh, no I wasn’t since there wasn’t anything online about it.
I can just hear my parents saying, well, if you’d balance your checkbook, it wouldn’t matter.
The old-fashioned way beats technology — again.
Power to the Plane. Boeing has launched a website with screens, links and videos highlighting “power on” for its first 787 Dreamliner. “Power On” is a milestone in the jet’s development. It’s the first time the airplane comes to life. It tests that all the systems work in the airplane. That’s especially important for the Dreamliner, considering it’s the most electrically driven passenger jet in history.
The Machinists union has launched a blog called “Project Pelican: Kansas Jobs Flying South,” about Hawker Beechcraft’s plant in Mexico. The blog is part of the union’s protest of a Hawker Beechcraft internal document, which describes six phases of growth for the Chihuahua, Mexico, facility over the next several years. The plant opened in October. The company says it continually performs analysis but doesn’t always go forward with the plans.
Back in May when the stimulus checks started arriving, a large minority of people said they were going to use them to pay bills instead of the hoped-for spending splurge. Although it rarely pays to count on the financial discipline of the American consumer, this time it turns out to be true.
Today, the International Council of Shopping Centers said that sales at national retailers fell .6 percent last week. In the last month, sales were up less than 2 percent from the year before — pretty weak. Maybe too much of that money is going to gas stations. Even with $100 billion in stimulus checks for consumers, the great American spending party appears to be over, for now.
Two new studies are out, both arguing that the current Renewable Fuels Standard is “devastating” the economy and driving food prices out of reach.
The studies by Thomas Elam of Farm Econ LLC and Keith Collins, former USDA economist, come at the end of the EPA comment period on a request by Texas Gov. Rick Perry to roll back the ethanol mandate.
Both studies are in direct conflict with last week’s USDA report which found that ethanol has reduced gasoline prices and had only minimal impact on food prices. And with the Consumer Federation of America, which found that how far it is transported is the biggest factor in food costs. And with Texas A&M University, which found that energy costs affect food prices on multiple levels.
Both Elam and Collins said just the opposite, that ethanol has been a key factor in raising food prices and had almost no impact on gasoline prices.
Elam was hired by the Balanced Food and Fuel Coalition, a consortium of livestock, pork and poultry producers, to come up with a study to support their views.
Collins was on the payroll of Kraft Foods Global to provide supporting material for its comment to the EPA urging the overturn of the fuel standard.
HMMM. I wonder how those organizations knew what those studies would say before they were conducted?
In case you missed it (and this has ABSOLUTELY nothing to do with business), Bruce Springsteen is playing Kansas City in August at the Sprint Center. Tickets go on sale Saturday. Think Chris Presson can get the Boss to come to Wichita when Intrust Bank Arena is done?
Now, back to business. Here are your Tuesday links:
- Tensions are running high between Airbus’ French and German operations, BusinessWeek reports.
- Think Mom and Dad are going to leave you a fortune? The New York Times has eight reasons why you should not expect an inheritance.
- Ever heard of hypermilers? They’re people who take extreme measures to increase their miles per gallon. USA Today looks into the practice.
- Barron’s says the price of oil may be peaking and could fall to $100 a barrel by the end of the year.