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High oil prices... so what?
03 November 2008
Maybe history will not repeat itself. Adam Pilarski puts the case for fluctuating oil prices and their impact on aviation.
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We now have a genuine downturn in aviation activity. To remind the reader: for a downturn to be genuine we need a combination of factors for the perfect storm, including economic recession, war, terrorism, pestilence or another plague. We have the recession but also high oil prices and a financial meltdown. These are not caused by global warming as some contend.
The economic recession in the US is spreading to Europe and other parts of the world. The decoupling theory that I do not subscribe to, which claims that the US is immaterial because China and India march to their own drummer, has been debunked and a chill in the economy and aviation is being felt in these two great countries. Obviously lower levels of economic activity result in lower traffic levels. Oil prices are a major contributor to the downturn in aviation activity. Fuel costs have become the major...
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