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Help U.S. Airlines Reduce Your Fuel Costs

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By ROB MIXON Guest Column

The Tampa Tribune

Published: August 7, 2008

It is no secret that the airlines are hurting as they try to cut costs by charging more for baggage, eliminating movies, meals and other perks that customers assumed were normal when they flew. Some small general aviation aircraft pilots and flight instructors are paying $6 per gallon for aviation fuel. The octane of this small aircraft fuel is similar to automotive Regular (80-87) with a slight boost calling it 100LL (low lead.)

The Experimental Aircraft Association (EAA) has joined forces with the airlines to attack one of the problems with the high inflation of fuel. The following information, from EAA, will explain it more, and even give you a way to join in this effort should you be interested:

"July 10: A coalition of the major airlines took the extraordinary step today of co-signing a common e-mail to their joint cause, 'Stop Oil Speculations (S.O.S.) Now,' and encourages air-travel customers to rally support behind re-regulation of oil-market speculating practices."

"The 'S.O.S. Now's e-mail acknowledges that high oil prices are in part, a result of normal market forces of supply and demand. It adds however, that these 'normal market forces' are being dangerously amplified by poorly regulated market speculation."

"In short, the airline group asserts that paper trading and reselling of oil futures contracts has increased dramatically over the past 20 years, as regulatory limits have weakened or disappeared, 'a barrel of oil may trade 20, plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs."

"Accordingly the airlines are calling for restored regulatory limits on market speculation to complement nationwide efforts to conserve energy and grow the supply." Here is where you can become involved by joining in the effort of private aviation and the major airlines to help lower the price you pay every time you pull your car, truck or recreational vehicle up to the gas pump.

Simply go to the Web address of www.StopOilSpeculationNow.com/sos/ "which is a Web-site designed to encourage federal legislative action." Once you click on the S.O.S. Website you will find the following explanation: "The oil price bubble is unfairly taxing American families and restricting our nation's economic potential. While everyone is aware that, like gravity, is invisible yet powerful. This force is rampant speculation."

"Every time you buy products such as food or gas, you are impacted by unregulated, secretive and often foreign futures markets. Speculators in these markets are increasingly buying and selling commodities such as oil even though they have no intention of using the product. As unregulated speculators pocket billions of dollars at your expense, the price of commodities has increased out of proportion to market place demands."

The old Morse Code of S.O.S. (Save Our Ship,) when sinking ships and their crews were in danger seems very appropriate as higher oil prices contribute to our sinking economy.

Rob Mixon lives in Lake Placid.

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