Turbulence ahead for airlines despite oil price drop


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No comments from JAL and ANA? may be these two airlines are not expecting turbulances...!

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Every industries should be affected by risky financial stuff like exchange rate, material cost and fuel cost. I would say company managements should transform companies to very solid structure, which can survives no matter how severe the financial condition is. Nevertheless, companies needs also to develop new services to expand their revenue which allows them to invest future services. Having either of cost saving and developing new services, companies can survive in the market.

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So they hedge on oil, and as a result us customers must pay more money for something that's getting cheaper? If that's the case, the airlines deserve all the misery they're getting.

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The oil price drop is temporary. With the cheap oil reserves rapidly being depleted, the long-term trend is up, and only up. And any war in the Middle East can send it skyward immediately at any time.

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