prices are up

[bob loblaw]

That's one of the reasons I don't think loans are all bad when it comes to flight training. I believe in keeping debt to a minimum, but when you see rental rates going up $12/hr over a couple years, interest on a loan isn't as bad as it sounds at first.

On a related note, my supervisor recently told us CFIs in a meeting that they are aiming to actually reduce the fleet rental rates at my school in the future, due to a new insurance carrier and streamlined mx. My roommate (another CFI) and I had a good chuckle about that later. I'll believe it when I see it. Increased rental rates are in the same category as taxes and death, in my book.

Flying has never been an activity that the "Average Joe" could afford. When I started flying in 1987, I sacrificed everything to earn a private certificate. The rates back then for a C152 was $54.00 and $20.00 for the CFI. Having said this, I never once questioned the rates and happily paid them. Whenever I have a student who questions the rates, I tell them what I paid from 1987 to 2003. I explain to them that fuel and insurance costs continue to rise with no end in sight. In 2003 I was paying $89.00 for a C172 and $38.00 for the CFI.

I also remind them that the owner of the school isn't doing this as a hobby. He deserves to make a profit. He has all the overhead, and a large portion of risk.

 

[tonyw]

Not the highest margin, no. But they made the largest corporate profit in history. This becomes wrong is when it adversely affects other sectors of the economy, as is the case with fuel prices.

So what if they made the highest corporate profit in history? Their margins are nothing to brag about. In fact, if there's one thing that's obscene about Exxon's payoff to its CEO, it's that he didn't do jack squat to deserve it.

His company's stock has lagged the S&P 500 when he was in charge of things, and its margins are relatively low. Put that together, and they should be kicking him to the curb with nothing.

But instead, he gets about $144K a day.:banghead:

Like the book says, all animals are equal, but some animals are more equal than others.

 

[bob loblaw]

Baloney. That corporation has invested billions of dollars into equipment, infrastructure, and wages for the express purpose of making a profit. As long as they are playing by the rules, there is nothing wrong with making a large profit. If the profit level is too large, one of their competition will undercut them, lower prices, and steal their business. Guaranteed that every oil company out there is adjusting their prices by fractions of a cent to maximize their profits, and if any one of them steps out of line the others will gobble up their market share in a heartbeat.

If you have a problem with a capitalistic system running the oil industry and want to have the government take over, well, in my opinion you haven't seen high prices until you give that system a try. Either the oil prices will go higher or your tax dollars will to subsidize lower fuel costs. Either way, good luck.

You must not get Oscar-Meyer where you live otherwise you would know that Oscar-Meyer has a way with B-O-L-O-G-N-A.

 

[flyover]

Not the highest margin, no. But they made the largest corporate profit in history. This becomes wrong is when it adversely affects other sectors of the economy, as is the case with fuel prices.

Well we're still below the historically highest prices, even at $72 a barrel. I think it's got to get above $80 to reach it's historical high adjusted for inflation.

The oil business has not been a very profitable one. Not as bad as the airline business, but close. But of course people don't notice during all the years when gas prices are low and oil companies juggle profits vs. exploration.

Just hope to god that we don't go for a windfall profits tax or try something else to punish big oil. If we do, you ain't seen nothing yet on gas prices as oil companies are restricted from investing in drilling and exploration.

Oil prices are just like farm commodity prices. Farmers don't set those prices, they just try to make money at them. Likewise the oil companies don't set the price of oil.

Profits are good. For farmers, airlines, oil companies.