{"id":148,"date":"2012-06-07T11:49:07","date_gmt":"2012-06-07T09:49:07","guid":{"rendered":"http:\/\/www.aviationadvocacy.aero\/blog\/?p=148"},"modified":"2013-02-05T14:02:38","modified_gmt":"2013-02-05T12:02:38","slug":"oil-price-fall-is-a-bright-spot-for-bizav-too","status":"publish","type":"post","link":"https:\/\/www.aviationadvocacy.aero\/blog\/?p=148","title":{"rendered":"Oil price fall is a bright spot for bizav too"},"content":{"rendered":"The high wire act that\u2019s barely keeping the EU\u2019s financing system from derailing the economy is far from over. The repercussions are serious for serious for the travel industry and in particular the aviation industry.\r\n\r\nThe one bright spot is that poor growth prospects have caused oil prices to slump. Back in March 2012, IATA warned that a $150 dollar spike would cost the industry $5.3bn in costs. As of this week the WTI price was at just $83.\r\n\r\nThe last time oil prices were this low, at $79 in 2010, the global airline industry enjoyed its most profitable year of operations. Brent\u2019s price is more closely correlated to jet fuel and averaged $80 in 2010. But even Brent has now fallen below $100 a barrel, 20% down since the start of May.\r\n\r\nFuel is a huge input cost for commercial airline operations, accounting for anywhere between 30% and 50% operating costs. But it\u2019s also a major factor for business aviation operations. Between the light and heavy end of the market, 10-15% of total operational costs (including ownership) are fuel generated.\r\n\r\nTo counterbalance its many other challenges, business aviation could therefore yet have at least one advantage going into the second half of 2012. Unless there\u2019s another war in the middle east of course&#8230;","protected":false},"excerpt":{"rendered":"<p>The high wire act that\u2019s barely keeping the EU\u2019s financing system from derailing the economy is far from over. The repercussions are serious for serious for the travel industry and in particular the aviation industry. The one bright spot is that poor growth prospects have caused oil prices to slump. Back in March 2012, IATA [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[7],"class_list":["post-148","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-business-aviation-richard-koe"],"_links":{"self":[{"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=\/wp\/v2\/posts\/148","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=148"}],"version-history":[{"count":2,"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=\/wp\/v2\/posts\/148\/revisions"}],"predecessor-version":[{"id":181,"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=\/wp\/v2\/posts\/148\/revisions\/181"}],"wp:attachment":[{"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=148"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=148"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aviationadvocacy.aero\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=148"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}