Business
GM and Ford May Be Dying, But Toyota's in Trouble Too
Everyone knows that Ford and GM are in deep, deep trouble. Cratering
sales, credit downgrades, and diminishing cash reserves have people
lining up to predict the death of one or both companies. But there's another auto industry story that's not getting nearly as much ink:
Toyota's isn't looking so great these days, either.
Ryanair Plans $15 Flights to Europe
While US airlines have bumped prices so sharply that some frequent fliers are turning to the bus, a European airline is getting ready to sell you a ticket to London that costs less than an entree at the Olive Garden.
Low-cost Irish monster Ryanair announced that it plans to begin flying from Europe to the US, with economy tickets starting at 10 euros, or around $13.00. Ryanair expects to make money on the flights by sticking to its wildly successful European business model of charging passengers for almost everything but the air they breathe, and by offering a more traditional business cabin in the front of the plane.
Airlines See Big Traffic Drop and Expect More Bad News
As far as commercial aviation goes, the recession is already starting to bite.
The
International Air Transport Association(IATA), the body that represents most of the world's airlines, says that traffic declined 2.9 percent year over year in September, and doesn't see the situation getting better anytime soon. "It's the first monthly drop we've had since the 2003 SARS crisis," Steve Lott of the IATA told Wired.com. "And it's happening across all markets simultaneously. That's concerning to us."
A Big Deal Masks Worries at Boeing — and Airbus
Every company loves closing a big deal, which is why Boeing brass probably popped champagne corks yesterday when American Airlines
announced an orderfor as many as 100 Boeing 787 Dreamliners. But behind the splashy announcement lies a more complicated story of an industry facing a difficult future.
Airplanes Becoming Giant, Flying Advertisements
Handing over two bucks for a can of Coke on a long flight is depressing, but it's even more so when you place that soda on a tray table that's covered with a giant advertisement.
It's a bummer, but it's becoming more and more common. Airlines, eager to grab revenue anywhere they can get it, are opening up every square inch of their planes to advertisers, selling space on tray tables, walls, overhead bins, soap dispensers, cocktail napkins and barf bags. If the idea proves successful, it could generate millions of dollars in new revenue.
read more »Boeing Reaches Another 787 Milestone, but Strike Takes Toll on Company
Boeing has received plenty of unwanted press lately, so the company must be happy it has something good to talk about.
read more »
Airlines Hurt By Dropping Oil Prices. Huh?!!
These days it seems like airlines get smacked down even when they do something right. Case in point: this week United Airlines announced that it was taking a $225 million charge thanks to the recent drop in oil prices. Say what?
United has fallen victim to its own efforts to manage fuel costs. The airline has been buying jet fuel using what is know as hedging, which Ben Brockwell of the Oil Price Information Service describes as "an insurance policy against prices rising."
Here's a very simplified explanation of how fuel hedging works, using a hypothetical scenario:
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