Posted: Thu May 22, 2008 3:50 pm
Huh? As long as we are going economist, what about the effect of the current administrations $US devaluation? With growing demand in countries with stronger currencies than the $US and oil priced in $US you get inflation and currency-driven price increases. With the euro at $1.57 today vs. $0.92 in 2002 I'm surprised oil is not pricier than it is today.
Get used to more expensive petroleum products in the future. The rest of world already enjoys that privilege.
What does that mean for air travel? Increase in cost of goods sold drives higher break-even prices. That's it. The airline industry is not out to get us, its a systemic change that is going to drive inflation across the board.
Cheers, RickG
Get used to more expensive petroleum products in the future. The rest of world already enjoys that privilege.
What does that mean for air travel? Increase in cost of goods sold drives higher break-even prices. That's it. The airline industry is not out to get us, its a systemic change that is going to drive inflation across the board.
Cheers, RickG