Airline Industry Blames Bush Administration for High Oil Prices

http://ap.tbo.com/ap/breaking/MGAABC937PD.html

Airline Industry Blames Bush Administration for High Oil Prices
By Brad Foss The Associated Press

WASHINGTON (AP) - The U.S. airline industry accused the Bush administration Thursday of recklessly driving up the cost of oil by purchasing unnecessarily large amounts of petroleum for the nation's strategic reserves at a time when prices are already high.

"The government is out buying fuel, it appears, without much regard for the impact that it is having on prices," said James C. May, the chief executive of the Air Transport Association, the industry's main lobbying group.

May, speaking to a group of reporters at the association's headquarters in Washington, said oil purchases made by the Energy Department were adding enough demand to the world marketplace to drive up the price of oil by more than $6 per barrel, a major concern for airlines since jet fuel is their second biggest expense after labor.

Industry analysts attribute the high price of oil to tight supplies, rising demand because of the improving economy and fears about international terrorism.
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May does not oppose the policy of filling the reserve, but he said the government "needs to be a little more careful about how it goes about buying fuel on the open market."
AP-ES-01-08-04 1221EST

No link, but I recall that figure related to the SR being filled in the run-up to war.

About the same amount can be attributed to the refineries who all seem to miraculously cooperate to raise prices at the same time. This in the guise of a broken pipeline in Arizona last summer ...

Look at what the already struggling air line industry has had to endure in the past 3-4 years and I am surprised that any of them are in business at all anymore. First deregulation in its final phases, then terrorism and high oil prices all while technology is reducing the need for their most profitable customers (business travelers) to use their service. So you have something that has gone from being a luxury to something that has become commoditized and something is going to give. Look at how they were treated by the government after the terror attacks. They did lose the need to pay security personnel, so the government made them all charge more to employ the TSA folks.

Why is the Shrubbery so mean to the airlines. . . You need look no further than United, who is in bankruptcy, they are strong havens for unions to the point that there are union leaders on the boards of the company's. Yes, if you bring the airline industry to its knees, you will eliminate many union jobs. A large goal of the current cabal.

Move overpaid US management overseas and save a few millions is my thought.