"Help us solve US airlines' pressing fuel problem"
Published: 26 Nov 2008
Sabre Holdings has written an open letter to its "US customers" requesting them to help solve US airlines' pressing fuel problem.
The letter is as follows:
"To our US Customers:
High fuel prices are not just hurting us at the gas pump: they are threatening the existence of our nation's intercity transportation network – our airlines – and this could cripple our economy as a whole. But we can overcome all of this if we work together to ensure energy policy is given the urgent attention it deserves in Washington.
Airlines play a crucial role in our economy and our way of life, one that's as essential to our well-being as the power grid. Businesses and families rely on a strong airline network to keep our economy moving forward and to keep us connected as a country. Airline failures would mean immediate unemployment for airline workers and suppliers, a business slowdown (fewer meetings, missed business opportunities, less collaboration on projects) that could lead to more job loss, loss of tourism revenue and jobs, weakened U.S. competitiveness and disruptions in delivery of parts needed for manufacturing.
There are many long-term solutions to our energy problems, and our elected officials need to put in place a comprehensive national energy policy. However, the struggling airline industry cannot wait for long-term solutions. Cash reserves are dwindling, flights are being reduced dramatically to communities throughout the country, and the prospect of near term major domestic airline failures is looming. We urgently need to solve the pressing problems in front of us. Specifically:
We need to tighten regulations on oil speculation. Excessive, unregulated speculation is likely driving up fuel costs unnecessarily.
We need to strengthen the dollar against other currencies. Oil is priced in dollars, and when the dollar is weak, oil prices are naturally higher. Our monetary policy must recognize the urgent need for a stronger dollar.
Using American ingenuity and incentives from government, we need to both exploit existing and develop new, alternative energy sources – renewable and sustainable energy, as well as increased, but environmentally responsible production from currently available sources in the near term to meet our country's needs and decrease our dependence on foreign oil.
We also need to finally start the process of fixing our air traffic control system, which will help reduce demand for fuel and reduce carbon emissions.
Together we can make a difference. These solutions will help reduce oil prices, stabilize our airlines and put our economy on a better footing. If you support these efforts, write your Congressional representatives and tell them you want them to take specific action, because without action now, our economy – and our way of life – are in jeopardy.
The Sabre Holdings Team
Comments
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Jim said on 28 Nov 08:
The timing of this letter does not make good sense. Oil hit a high several months ago and has fallen to the level of several years ago. I don't have exact prices in front of me, but the high was about $150 three months ago and the airlines rightfully added a fuel surcharge. But today, fuel prices have dropped by almost two-thirds to somewhere less than $60 a barrel.
This letter from Sabre Holdings does not recognize that prices have actually fallen. There may well be other reasons that airlines are having economic troubles.