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Posts Tagged ‘Driving’

Gas Prices on the Rise Again

January 12th, 2009 2 comments

It looks as though the low gas prices are going away.  CNN is saying that gas prices are going back up after sliding down from the July 11th High that has hurt so many and aided in the economic crisis we are in now.  Though the gas prices going up is a good sign for gas and oil workers in the south as that means the demand for more fuel is rising.  Typically the winter months begin the rise up to the spring and summer travel season meaning more fuel.  This could be s sign of a strengthening economy.  When the demand goes up for fuel so does the demand for support of goods to supply.  Though this is only a hope for a need to supply jobs.  For me the gas industry directly effects my family.  If the off shore wells are in production that means my family business of making pipe for oil wells and pipeline is needed.  So in turn th gas price is a god send to support my family.

But rising gas prices are going to hurt others that are already hurting and don’t work in the industry.  So as a socially responsible citizen I try to transfer the funds to companies that make goods here.    So my buy American Attitude is in full swing.

I doubt the projection of $1 a gallon gas is probably not going to happen.  That failure is probably good.

Check out the CNN.com Artilce

Gas-price slide shifts into reverse, rises 12 cents in 3 weeks

(CNN) — The U.S. average price for regular unleaded gasoline rose by nearly 12 cents in the past three weeks, marking the first increase in six months, according to a national survey released Sunday.

“It is the first rise since July 11 last year when prices hit their all-time high,” said Trilby Lundberg, publisher of the survey.

The average price of self-serve regular unleaded gasoline is $1.78, according to the Lundberg Survey, which is based on responses from more than 5,000 service stations nationwide. The latest survey looked at prices January 9.

“The price had to hit bottom sometime,” Lundberg said.

She said part of the reason for the price spike is recent indications of production cuts among OPEC members, which are aimed at driving up oil prices during a time of year when there is a decreased demand for gasoline.

“January historically is the lowest gasoline usage month,” Lundberg said.

Despite the increase, gas prices are still $1.29 lower than they were on January 11, 2008, she said.
Drivers in Billings, Montana, had the cheapest gas on average, paying $1.34. Motorists in Anchorage, Alaska, paid the most, at $2.32.

Automakers got Grilled

November 19th, 2008 2 comments

Today on Capital Hill the Big Three Automakers were grilled about their business practices. Apparently the Senator from Massachusetts heard my trimming the fat suggestion at the end of my last Big Three Post. But in the latest round of American Companies needing government funds the Auto Executives were grilled by a Senator from MA about their corporate jet usage. Read about it on ABC News.

Big Three CEOs Flew Private Jets to Plead for Public Funds

Auto Industry Close to Bankruptcy But They Get Pricey Perk

By BRIAN ROSS and JOSEPH RHEE

The CEOs of the big three automakers flew to the nation’s capital yesterday in private luxurious jets to make their case to Washington that the auto industry is running out of cash and needs $25 billion in taxpayer money to avoid bankruptcy.

The CEOs of GM, Ford and Chrysler may have told Congress that they will likely go out of business without a bailout yet that has not stopped them from traveling in style, not even First Class is good enough.

All three CEOs – Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler – exercised their perks Tuesday by flying in corporate jets to DC. Wagoner flew in GM’s $36 million luxury aircraft to tell members of Congress that the company is burning through cash, asking for $10-12 billion for GM alone.

“We want to continue the vital role we’ve played for Americans for the past 100 years, but we can’t do it alone,” Wagoner told the Senate Banking Committee.

While Wagoner testified, his G4 private jet was parked at Dulles airport. It is just one of a fleet of luxury jets owned by GM that continues to ferry executives around the world despite the company’s dire financial straits.

“This is a slap in the face of taxpayers,” said Tom Schatz, President of Citizens Against Government Waste. “To come to Washington on a corporate jet, and asking for a hand out is outrageous.”

Wagoner’s private jet trip to Washington cost his ailing company an estimated $20,000 roundtrip. In comparison, seats on Northwest Airlines flight 2364 from Detroit to Washington were going online for $288 coach and $837 first class.

After the hearing, Wagoner declined to answer questions about his travel.

Ford CEO Mulally’s corporate jet is a perk included for both he and his wife as part of his employment contract along with a $28 million salary last year. Mulally actually lives in Seattle, not Detroit. The company jet takes him home and back on weekends.

Plants Closed, Company Jets Stay

Mulally made his case Tuesday before the committee saying he’s cut expenses, laid-off workers and closed 17 plants.

“We have also reduced our work force by 51,000 employees in the past three years,” Mulally said.

Yet Ford continues to operate a fleet of eight private jets for its executives. Just Tuesday, one jet was taking Ford brass to Los Angeles, another on a trip to Nebraska, and of course Mulally needed to fly to Washington to testify. He did not address questions following the hearing.

“Now’s not the time to do that sort of thing,” said John McElroy of the television program “Autoline Detroit.”

“Now’s the time to be humble and show that you’re sharing equally in the sacrifice,” McElroy said.

GM and Ford say that it is a corporate decision to have their CEOs fly on private jets and that is non-negotiable, even as the companies say they are running out of cash.

Private jet travel is perhaps the greatest perk of all for CEOs, who say it allows them to travel more efficiently and safely, even in a recession.

AIG, despite the $150 billion bailout, still operates a fleet of corporate jets. The company says it has put two out of its seven jets up for sale and is reviewing the use of others. Though there are no such plans by GM or Ford.

“It appears that the senior management of the automakers simply don’t get it,” said Schatz.

Gas Prices affect everyone

June 24th, 2008 No comments

Gas prices really hit home and affect everyone. No one really knows the true effect of gas prices until it is too late. I worry about the gas prices effect on the economy as a whole. Today’s article from CNN shows the impact it could have on airlines. As a frequent flier and traveler I have sidelined some of my trips due to the cost. In fact a trip across town is taken into consideration more closely because of the sheer cost of fuel. As a once frequent restaurant goer I now eat at home more than ever before. The cost of fuel really effects my day-to-day life.

With the volatility of the airlines these days anything that effects them shows a true representation of the American family. Like that of the already hard hit American families airlines are hurting too as can bee seen in the quote from the CNN article, “Already-depleted cash reserves are dwindling fast, and unless the fuel crisis lessens, airlines face not the now-familiar protracted restructuring in bankruptcy, but outright and immediate extinction”. The families will not disappear but it will affect the American way of life that we have grown so accustomed too.

Read the article over at CNN, Fuel costs could ‘devastate’ airlines.

Fuel costs could ‘devastate’ airlines

Rising fuel costs could drive major air carriers out of business and hurt economy, says report.

By Aaron Smith, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) — The skyrocketing price of fuel could “devastate” the airline industry and hurt the economy, according to a report from the Business Travel Coalition released Monday.

Pressured by rising fuel costs, major airlines could collapse as early as this year, the coalition said. The failure of just one airline could disrupt travel for 200,000 to 300,000 daily passengers and cause between 30,000 and 75,000 immediate job losses, said the coalition.

The failure of more than one airline could result in 100,000 job losses, said the report, particularly in such hubs as Atlanta for Delta Air Lines (DAL, Fortune 500), Chicago for UAL Corp.’s (UAL) United Airlines and Continental Airlines’ (CAL, Fortune 500) Houston.

“Already-depleted cash reserves are dwindling fast, and unless the fuel crisis lessens, airlines face not the now-familiar protracted restructuring in bankruptcy, but outright and immediate extinction,” said the report.

Business travel would be disrupted, as would the airborne supply chain for goods like pharmaceuticals, electronics and auto parts.

Rising fuel costs hit airlines hard. Fuel expenses are expected to total $61.2 billion this year, compared to $41.2 billion in 2007, according to the Air Transport Association.

Some major airlines, such as Northwest Airlines (NWA, Fortune 500), United Airlines, Delta and U.S. Airways (LCC, Fortune 500), continue to operate despite filing for bankruptcy in the last several years. But the credit crisis would make it harder for a bankrupt airline to keep operating while trying to restructure its business, according to the coalition.

The lack of bankruptcy financing is part of the reason why smaller airlines like Aloha, ATA, Champion, Eos and Skybus recently stopped operating, said the report.

Analysts who cover the industry disagreed that a major carrier would crumble this year, because the airlines still have enough cash to survive into 2009.

“I think it’s more likely that any large airline bankruptcies would occur next year,” said Philip Baggaley of Standard & Poor’s, who has assigned his lowest ratings to U.S. Airways, AirTran Airways (AAI) and JetBlue Airways (JBLU). “At least at current fuel prices, most of them have enough liquidity to get through several more quarters. But it could get rather more uncomfortable by 2009. Oil prices are the largest variable.”

Robert Mann Jr., an industry consultant, said the airlines have enough cash to ward off collapse for this year, and that capacity cuts should help them survive.

“The cuts in flying are designed to cut cash loss and that’s what I hope happens,” said Mann.

Raymond Neidl of Calyon Securities agreed that the airlines have enough cash to avoid disaster in the near future, though he expects that the number of carriers will shrink through consolidation.

“Nobody’s going into bankruptcy this year,” said Neidl. “Airlines die slow, and they always seem to come up with the cash to keep going.”

Delta plans to acquire Northwest Airlines, though the merger is yet to be finalized.

How is the cost of gasoline effecting your life? Does it affect you daily? Do you travel less because of the price of fuel? Let the world know how the effects on your wallet…

Home at Last

May 2nd, 2008 2 comments

I am home at last. After a three days and a some what leisurely drive I made it 1,000 miles. I made several stops and was in no big hurry.

When I initially set out I was going to drive all 16 hours! I quickly learned that was a good plan. I made it as far as Hershey, PA were I spent the better part of Wednesday touring the Hershey sites. Sometime during the afternoon I set out to complete the rest of the trip. I made it as far as Roanoke, VA before I could go no further! I wasn’t going to let a 16 hour drive drag out for a fourth day. So, I made the bulk and rest of the trip today.

I learned several things on this trip. I realized I probably wouldn’t make a good over-the-road truck driver and I don’t know how my parents ever took us on road trips. I remember as a kid driving from Alabama to the Grand Canyon. That must have been torture.

I made it home safe and in one piece. The roads are safer and the local economies between Jersey City, NJ and Birmingham, AL should be stimulated. I think I stopped and bought candy and burger king in every city in-between. So as I made a tradition with my previous post I leave you with a little coming home music.

Go Ahead Turn it up now!