Is this the start of a chain of cataclysmic events?
June 6, 2008
Continental cuts 3,000 jobs, grounds planes.
Nation’s fourth-largest airline takes 67 airplanes out of service and slashes payroll in response to high fuel prices.
By David Goldman, CNNMoney.com June 5th 2008
NEW YORK (CNNMoney.com) — The crisis facing the airline industry, propelled by out-of-control fuel costs, claimed another victim on Thursday.
Continental Airlines said it is eliminating about 3,000 jobs, or 6.7% of its staff, and grounding 67 mainline aircraft in an attempt to cut costs amid record oil and fuel prices.
The airline - the nation’s fourth-largest by miles flown by paying passengers - said it was facing the worst industry conditions since the terrorist attacks of Sept. 11, 2001.
“The airline industry is in a crisis: Its business model doesn’t work with the current price of fuel and the existing level of capacity in the marketplace,” said Larry Kellner, Continental’s chairman and chief executive officer, and President Jeff Smisek in a letter to employees. “We need to make changes in response.” In recognition of the company’s crisis Smisek and Kellner said they would not be paid the remainder of their 2008 salaries and will refuse payment under the company’s annual incentive program. “The move to decline their salaries is symbolically important, but the company’s image will still be weighed down by the impending layoffs,” said DePaul University transportation expert Joe Schwieterman.
New airline economics
The company said the 3,000 job cuts will come starting in September, and it expects most will be made with voluntary severance packages. After 9/11, Continental cut 12,000 staff, then about 21% of staff, in reaction to the terrorist attack and the drop in demand for flights that followed. “These record fuel costs have fundamentally shifted the economics of our businesses,” the letter said.
Continental estimates that the year-over-year rise in jet fuel amounts to about $50,000 per company employee. Many airlines have hiked fuel surcharges to fares and added fees to once-free benefits, such as food and checked baggage.
This latest move by Continental most likely means that passengers will need to pay even more to fly, according to Schwieterman. “There’s going to be enormous upward pressure on fares,” he said. “Consumers are going to feel this in a big way.”
Continental would not offer further comment beyond the press release. Despite other cost cutting attempts, Continental said its increased fares will lead to fewer passengers, which will necessitate a reduction in its capacity. The airline said it will trim its domestic mainline departures by 16% starting in September by accelerating the retirement of much of its Boeing 737 fleet.
Customers should expect crowded planes as airlines reduce capacity.”The bad news is that airplane load factors could be pushed to 90%, which greatly affects the perceived quality of service,” said Schwieterman. “The good news is that if they can shrink by as much as 20%, the airlines will become financially stable.”
Fuel fallout may not be over
The last time U.S. airlines were under this much pressure from fuel prices - in September 2005 - two of them, Delta Air Lines and Northwest Airlines, filed for bankruptcy.
On Wednesday, No. 2 airline United announced it was grounding 100 planes and cutting up to 1,600 jobs. But it may not be long before another airline makes a similar announcement. Some analysts believe that airlines will continue attempt to show Wall Street that they have a handle on the fuel crisis.”The cuts have been bigger than we expected, and more are still to come,” said Schwieterman. “Low cost carriers haven’t yet played their hand.”
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Is this what’s happening in our world?
June 6, 2008
Is this the gridlock of our global socio-economic situation?
Boss says to Secretary: For a week we will go abroad for a meeting, so make the necessary arrangements.
Secretary make a call to her Husband: For a week my Boss and I will be going abroad for a meeting, so please look after yourself.
Husband make call to his Secret Lover: My Wife is going abroad for a week, so let’s spend the week together.
Secret Lover make a call to Small Boy whom she is giving private tuition: I have work for a week, so please do not come for class.
Small Boy make call to his Grandfather: Grandpa, for a week I don’t have class because my Teacher is busy. Lets spend the week together.
Grandpa (The Boss) makes a call to his Secretary: This week I am spending my time with my grandson. We cannot attend that meeting.
Secretary make a call to her Husband: This week my boss has some work, we cancelled our trip.
Husband make call to his Secret Lover: We cannot spend this week together, my Wife has canceled her trip.
Secret Lover make call to the Small Boy whom she is giving private tuition: This week we will have class as usual.
Small Boy make a call to his Grandfather: Grandpa, my teacher said this week I have to attend class. Sorry I can’t keep you company.
Grandpa make call to his Secretary: This week, we will attend that overseas meeting after all, so make the necessary arrangement.
And so the gridlock goes on….
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What Is The Difference Between Truth, Marketing, Hope and Lies
June 4, 2008
Read the following article from the the WashingtonPost.com on Tuesday the 3rd of June 08, till the absolute end and draw your own conclusions.
Clinton’s Count Doesn’t Add Up
You have to admire Hillary Clinton for her ability to reshape reality to her preferred outcome. She seems to assume that if she says something loudly enough, and repeats it often enough, it will become true. Her victory speech in Puerto Rico was a minor masterpiece in carefully parsed self-delusion. Unfortunately for her, it takes more than conviction to win the Democratic nominating contest.
The Facts
Whatever Clinton might say, there is considerable doubt about her claim to be “winning the popular vote.” The only sense in which that is true is if she includes all the people who voted for her not only in Florida but also in Michigan, an election that she previously said “is not going to count for anything.” She also has to exclude the 230,000 “uncommitted” voters in Michigan, most of whom would have probably supported Barack Obama had he been on the ballot, and caucus participants in four states — Iowa, Nevada, Maine and Washington.
The best running tally that I have seen on various definitions of the popular vote comes from Real Clear Politics. It shows that if all the votes are included, and the uncommitted Michigan vote is awarded to Obama, the Land of Lincolner ends up with a slight lead in the overall “popular vote.” He also has a small lead in the popular vote including Florida but excluding Michigan and the caucus states.
The more important point, of course, is that the popular vote has nothing to do with the Democratic presidential nominating process, which is decided by delegates. After the Puerto Rico primary, and the rules changes adopted over the weekend, most estimates now put Obama within 45 votes of the 2,118 needed to secure the nomination. Clinton, meanwhile, is 200 votes away from the magic figure. That is hardly “a slight lead” in the delegate count.
Contrary to Clinton’s wishful thinking, it seems highly probable that Obama will nail down the number of delegates needed to win the nomination after today’s primaries in Montana and South Dakota, where there are a total of 31 pledged delegates. In order to win the nomination, Obama needs roughly 20 percent of the remaining pledged and unpledged delegates, while Clinton needs around 80 percent.
Clinton’s campaign also likes to claim that more Americans have voted for her “than anyone in primary history.” That is an artful formula, because it neatly sidesteps the controversy over the disputed elections in Florida and Michigan. It may or may not be true, depending on how you define your terminology.
The Pinocchio Test
This is one of those cases where the candidate can provide some data to back up his or her claim, but the claim itself is essentially meaningless. To paraphrase Hillary Clinton, “the people have spoken” and they have chosen their candidate. That candidate is . . . Barack Obama.
ONE PINOCCHIO: Some shading of the facts.
TWO PINOCCHIOS: Significant omissions or exaggerations.
THREE PINOCCHIOS: Significant factual errors.
FOUR PINOCCHIOS: Real whoppers.
THE GEPPETTO CHECK MARK: Statements and claims contain the truth, the whole truth and nothing but the truth.
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