South Africa: How Country's State Owned Enterprises Drive Up Inflation
19.09.11
How does it benefit South Africa if government fiscal policy, supposedly focused on inflation targeting as a key fiscal instrument, is ignored, not only in the breach but in practice by the government itself? This case of double standards indicates a lack of seriousness in pursuing the purported fiscal conservatism repeatedly trotted out as an inflexible central pillar of our economic policy.
Perhaps the most damaging example of this state-sanctioned inflationary pressure is Eskom. Here the government has permitted the National Energy Regulator to allow five year average increases of over 27% per annum, more than four times above the targeted rate of inflation of 6%. These increases are in turn four times greater than Eskom's previous tariff increases over the twenty years prior to that (1988 - 2007) of around 6.5 % per annum.
Eskom, cheered on by an ill informed coal and nuclear energy fixated cabinet, insists that it has had to increase prices to realistic levels. The reality is that we, the citizens of South Africa, are baling out a monopoly supplier, landed in its present crisis through poor political leadership. This is no different to the citizens of the OECD baling out a banking system their political leaders refused to rein in.
NEW YORK - Don't expect much elbow room on flights this
fall.
Planes have never been so full. There was barely a spare seat
this summer, and the next few months should be the same. To the
list of things airlines have taken away - hot meals, blankets,
headphones - you can add personal space.
For airlines and the people who invest in them, it makes sense.
Because of consolidation, partnerships and a push to eliminate
unprofitable routes, airlines can adjust schedules to match demand
and charge more.
But customer comfort is an afterthought. Not to mention space in
the overhead bin.
"There are some days on some flights when there are simply no
physical seats left," says Jim Reichart, vice president of
marketing and sales for Frontier, which sold 91 percent of its
seats in July and August. Frontier and US Airways both had their
best August for percentage of seats filled.
The figures shouldn't come as a surprise to anyone who fought
over an armrest this summer. With 130 million people flying, little
perks like empty middle seats or flying standby were hard to come
by.
Oil prices and aviation industry trends - Energy, Travel Industry and Transport Speaker - ...
www.globalchange.com Future of aviation industry with higher oil prices. Operational efficiency and budget airlines, capacity, turnaround time ...
Is jet fuel bought strictly through an airport?
Mar 16, 2010 by FireCollie | Posted in Aircraft
I am writing a paper about the commodity procurement of jet fuel for a major airline. Would an airline like Southwest buy its fuel through the airport? How would Southwest negotiate fuel prices if it is stuck with purchasing fuel from only that airport it's operating in? Who has the leverage?
First of all, aviation fuel is only delivered to the airlines at the airports, because that is where they use it. All major airlines buy their fuel directly from the oil companies to eliminate the profit that they would pay the airport for buying fuel from it. They do have to rent the fuel storage tanks from the airport because of this.
thisiscrazy70605 | Mar 16, 2010
when a United-Boeing flies from one airport to another, is the fuel price at each airport in the world the....
Apr 22, 2008 by John R | Posted in Aircraft
.... same? So does he pay the same in Boston than in Madrid?
And: How much does one pound of fuel cost?
most airlines do something called fuel hedging... they buy a huge amount of fuel far in advance so they don't have to pay more as prices go up, so they would be essentially paying the same thing across the country and the world, as they have contracts with many oil companies....
as for your second question, a gallon of jet-a is about 6 lbs per gallon.... and with current small airport jet-a prices around 5.50 a gallon or more (as they are the only prices i can really check), it would be 0.166 or 0.17*5.50 (0.16 repeating is the decimal equivalent of 1/6) or 5.50/6... that equals about 91.66 or 91.7 cents a pound (rounding up is good for computing trip costs, as you will have more money allocated than you need and will not run out of dough in nowheresville, USA)
On1xB | Apr 22, 2008
of course they r different prices.
countries that r rich in oil tend 2 sell it nationally cheaper than other countries that don't have any.
oil is NOT sold by the pound, it's sold by liters/gallons/barrels.
in America the barrel hit a high mark of $113 per barrel.
Xeneixe12 | Apr 22, 2008
No. At different places fuel is cheaper. For example; in Europe it costs more as their dollar is above our dollar. Another factor is where the country is located. If it is an oil rich country then it is cheaper and vis versa. Right now the cost of fuel is about 110 dollars a barrel.
Adam the smart man | Apr 22, 2008
United, like other air carriers, buys fuel at the prevailing price at each airport. Flight dispatchers have price lists of fuel cost by airport, and they do what they can to hold down costs. For example, a flight from Chicago to Des Moines to Denver may be fueled through Des Moines if the price of fuel in Des Moines is too high and the flight can be done this way.
Aviation kerosene currently is about $.50 per pound.
Regards,
Dan
Dan | Apr 23, 2008
The answers to your three questions. No. No. And how long is a rope?
John B | Apr 23, 2008
I am trying to find out what the airport/ terminal fees and taxes are, license costs, fuel costs etc. help?
Mar 10, 2008 by Jonathan K | Posted in Aircraft
I have found the planes i need and their costs but i cant find anywhere the costs of maintenace for a cessna caravan, fuel costs, hanger costs, airport taxes, terminal fees, licenses and fees. This part of my search has been quite fruitless. Rough guideline prices will do as i guess countries and airports are different etc. What does incorporation mean exactly when starting an aviation business?
Help, info and answers on this would be great, thanks.
Jon
Assuming you're in teh US:
Maintenance costs vary and will be difficult to come by. Find a shop that maintains at least one and see what they say. Talk to the previous owner, or better yet, his shop.
Fuel costs can be estimated based on consumption rate, fuel costs (check the local FBO for a starting point), and anticipated hours flown.
Hangar costs vary greatly by airport. The Caravan is a big bird and requires a big hanger. Around here that would run you $650/month but it could be multiple times that elsewhere. You need to talk to the airport at which you plan to hanger it.
Airport taxes and terminal fees: Any taxes and fees associated with operating the airplane out of a particular airport can be determined by contacting the airport. If there are fees for hangering the airplane, they will be included in your hanger rent. If you're talking about landing fees and other fees associated with landing and taking off at a particular airport, you have to contact each airport to find out. They're not standard across airports.
Licenses and fees for the most part depend on the state in which the airplane is hangered. In most states you'll pay Use Tax, which is similar to Sales Tax. You'll also have a registration fee and annual property taxes. Contact your state department of transportation. There are FAA fees associated with registering the airplane. These can be determined by contacting the FAA.
If you're looking at starting an aviation business you should start by finding a good lawyer. You should join AOPA, sign up for their legal program, and get a referral to a good, local aviation attorney. They'll be able to answer all your questions about incorporation.
Good luck.
Craig R | Mar 10, 2008
I do aviation consulting for a living. Message me and perhaps we can work something out.
John B | Mar 10, 2008
Are you trying to start up a charter/cargo business? Have you called around to your competition to see what there average costs were? I'm an aspiring pilot working on his instrument/commercial ratings and hoping to one day do the same thing your trying or pondering. I'm in the DFW area. Try this company for answers if they are willing to? or any small outfit within the area you might be interested in.
http://www.martinaire.com/
this FAA part 135 operation is in my area DFW, TX..
As far as business advise on incorperation try to google NBAA for some aviation business law advise?
http://www.nbaa.org/
Good luck.
Nalu
naluryder | Mar 10, 2008
Just go to www.airnav.com find an FBO then call for a quote.
Cessna 172 Man! | Mar 10, 2008
jet a is $6.00 in california (bay area)
Rowdy18 | Mar 11, 2008
Jet A Fuel price?
Feb 07, 2008 by dreamliner787 | Posted in Aircraft
Which airports in US, do you know of that have low JetA fuel prices? What is the average price, and what are the prices at various large commercial airports throughout US?
Thanks.
Try www.100LL.com
They list current fuel prices at the airport of your choice and they usually include Jet A in their listings.
XP Pilot | Feb 07, 2008
At what airports in Southern California can I find Auto Gas or high octane unleaded aviation fuel?
Sep 07, 2010 by Ducati32 | Posted in Aircraft
I have a Bonanza D35 with an STC to run 87 Octane fuel but I haven't found any near me in San Diego, CA. Does anyone know where I could find some? Also, whats the most recent price at the pumps?
You have an even bigger problem than you think, you can't have ethanol in the 87 octane that you do find! When the STC was issued you could fill up at any station. Since the EPA has dictated 10% nearly everywhere you will have to find non ethanol 87 octane. In all honesty 100LL is still the best bet, just add some additives.
Here is one of the least expensive in San Diego http://www.100ll.com/showfbo.php?HashID= 93f78ba1bdd3f7b0b2003a162952e416
$4.59/gal self serve http://www.100ll.com/
Use 100LL to find prices.. or use just about any flight plan software that includes fuel prices.
BANNING - ok Banning is cheaper at $4.20/gal http://100ll.com/showfbo.php?HashID=a061 8835e6fecb7153c4110e142183a9
ADD -you can also check for mogas on AirNav
http://www.airnav.com/fuel/local.html
It shows no mogas available within 100 miles of KSDM (used that as a starter point).
Moneycontrol.comNo comment could be immediately obtained from airlines on the impact of the price hike on passenger fares. ATF prices vary from airport to airport, depending on the local sales tax or VAT. The three fuel retailers revise jet fuel prices on the 1st and Oil cos hike ATF price by 2.5 %all 21 news articles »
South Africa: How Country's State Owned Enterprises Drive Up InflationOur state owned port, railway, road, power and airport authorities have each increased prices at rates that far exceed our targeted or actual inflation rate. Consequently these so-called State Owned Enterprises (SOEs) collectively fuel further and more »
Airline ReporterThe spread between the cost of a barrel of crude and a barrel of jet fuel has continued to widen, he said. And that is before the seasonal increase in jet fuel prices that normally sets in in the fall and winter, when refiners concentrate of making Virgin America Reports Second Quarter 2011 Financial Resultsall 37 news articles »
Airlines generally lose money on empty seats because they already are paying for fuel, pilots and flight attendants. But how many seats are filled is only one factor in airline profitability. Airlines have to make enough money from fares and fees to and more »
He also debunked ASL's charges that the Correia Group--with a major stake on the board of Ogle Airport Inc and the umbrella company for Trans Guyana Aviation (TGA)—was using its position as a monopoly player in imposing high fuel prices on airline
Moneycontrol.comNo comment could be immediately obtained from airlines on the impact of the price hike on passenger fares. ATF prices vary from airport to airport, depending on the local sales tax or VAT. The three fuel retailers revise jet fuel prices on the 1st and Oil cos hike ATF price by 2.5 %all 21 news articles »
Airline ReporterThe spread between the cost of a barrel of crude and a barrel of jet fuel has continued to widen, he said. And that is before the seasonal increase in jet fuel prices that normally sets in in the fall and winter, when refiners concentrate of making Virgin America Reports Second Quarter 2011 Financial Resultsall 37 news articles »
He also debunked ASL's charges that the Correia Group--with a major stake on the board of Ogle Airport Inc and the umbrella company for Trans Guyana Aviation (TGA)—was using its position as a monopoly player in imposing high fuel prices on airline
