A discussion about the airline industry, airline employees, and all things related

The counting down to the number 1 aviation story of the year continues with number 5. 

#5:  Oil Prices.

Oil prices hit an all time high this summer topping US$72 a barrel.  That meant that aviation fuel sky rocketed too.  This hurt a lot of airlines that were on the cusp.  Southwest Airlines beat the street by hedging their fuel prices years ago and it helped them out this year.  While the industry was paying 50-60-70 dollars a barrel, SWA had a 36 dollar a barrel price locked in.  A lot of airlines got burnt as prices continued to climb, and in turn so did seat ticket prices.  Passengers suffered on this one too.

#4:  Thwarted Terrorist Attacks.  

This thwarted attack helped slow travel across the pond between the UK and the US, helped enact liquid bans on airlines and our current 3-1-1 rule is a result of this plot.  After that plot a few airlines suffered lower numbers and lower revenue but airline travel across the Atlantic is extremely strong.  In fact, business travel is stronger than ever as can be seen by the three new airlines and the fourth on the way offering business travel only planes.  The UK and American traveler is resilient. 

#3:  Comair Crash 

The crash of the Comair flight was one of the first major airline crashes in years.  Confusing airport layout maps, understaffing by the FAA, over worked air traffic controllers and weather all lead to the crash of the aircraft that killed 49 people in Lexington, KY.  The United States air traffic system remains the safest form of transportation by far in this country.  The tragic deaths of the passengers will definitely lead to policy enforcement and new regulations to help prevent the death of future passengers to help keep the system the safest in the world. 

#2:  United Airlines/Continental Airlines Rumors.  

This rumor has been going on since the beginning of the year but recently has seen more light as some of the rumors were confirmed when a source from inside the companies said that the airlines were talking again.  All of this comes as US Airways made that hostile takeover bid for Delta Air Lines several weeks ago.  However Continental and United have been rumored to be talking since before United exited bankruptcy in February. 

#1:  US Airways Hostile Bid for Delta Air Lines.  

This story, although late in the year, has to be one of the most interesting.  A company not even out of its current merger, wants to buy another carrier in bankruptcy protections even though that company doesn’t want to merge.  To make things more interesting, the hostile bid takeover comes even though nothing seems to match up:  fleets, staff, service, overlapping destinations.  Nothing seems to add up.  But this little story caught myself, Delta Air Line’s CEO, and many others off guard.  The nearly US$9 billion dollar bid sparked many other merger and takeover bids.  AirTran wants to buy Midwest, United and Continental were seen talking again, Northwest is looking like a prime target, Qantas goes private and so many other deals out there and all after such a turbulent year. 

The year 2006 was an interesting one, I can’t wait to see what 2007 brings.