Sunday, May 28, 2006

Airplanes, Plastics enterprises, Fed Ex: Do They Need to be Subsidized?

Google did pictures

Time Special Issue

The lives and ideas of the world's most influential people

May 8. 2006

"Who Wins and Who Looses When Gas Prices Skyrocket?"

by Bill Saporito

The Airlines ,Chemical enterprises, and Fed Ex: Do They Need to be Subsidized by our Government?

Mr. Saporito wrote an interesting article on the whole problem that we are having with the price of gasoline escalating at such a high rate. Everyone knows about the fact that gas prices have gone up considerably and that this is diffiuclt for people who drive a lot.

Do you realise that Dow Chemical using up 47% of its' total cost (budget) in energy and hydocrabon feedstocks, Mr. Spaporito tells us. How about this: Saporito discovered that for every one dollar increase in the price of a barrel of oil this translates to a $365 million for each of the eleven airlines? They are all going into the red; even the very efficient Jet Blue!Some of the airline companies were hoping to be breaking even this year. Now they are finding out, according to Mr. Cordle of Airline Forecasts, that they may stand to loose $3.5 billion in 2006. Cordle predicts mergers and higher fares, but will that be enough? How much of a price increase can the public carry?

Fed Ex had to go up from 12% to 13.5% . How much more can they pass along and make money?

Saporito says that even pizza delivery companies are getting worried.

He points out that the world price is being driven up beyond what we have experienced in the past due to huge demand from new industries in China and in India.

What do you think? Will we subsidise these companies in order to keep our economic health and growth as a modern society?Do you know another way to afford these increases?





jlocorriere05 said...

Prices for gas for our cars in the UK are $7 a gallon, we've always marvelled at your cheap gas in the US! Jeannette xx

gaboatman said...

The escalating prices of gasoline will force us, as a nation, to do what should have been done long before we found ourselves in this situation.  That is, we shall find new ways to conserve energy and seek out alternative fuel sources.  We shall start using and manufacturing vehicles that consume less fuel than ever before and even those that burn different fuels than are currently being used.  As for subsidizing the businesses you mentioned, we can only keep them going for just so long unless they change, too.

sunnyside46 said...

it seems to me that scientists could come up with another form of energy.