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<DIV class=print-title>Airline CEOs issue distress call to customers</DIV>
<DIV class=print-submitted>By <EM>Thomas Steinmetz</EM></DIV>
<DIV class=print-created>Created <EM>07/11/2008 - 2:48am</EM></DIV>
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<LI class="first taxonomy_term_5608">It is no secret that major US airlines
are facing some of their toughest challenges. It is no wonder then why their
chief executive officers have banded together, through an open letter, to urge
consumers to help them call for changes to the current situation, in
particular the skyrocketing cost of fuel. </LI></UL></DIV>
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<P>Robert Fornaro of AirTran Airways, Bill Ayer of Alaska Airlines, Gerard J.
Arpey of American Airlines, Lawrence W. Kellner of Continental Airlines, Richard
Anderson of Delta Air Lines, Mark B. Dunkerley of Hawaiian Airlines, Dave Barger
of JetBlue Airways, Timothy E. Hoeksema of Midwest Airlines, Douglas M.
Steenland of Northwest Airlines, Gary Kelly of Southwest Airlines, Glenn F.
Tilton of United Airlines, and Douglas Parker of US Airways all took part in an
unprecedented plea to the public. They are urging consumers to contact the US
Congress through the Website <A title=www.StopOilSpeculationNow.com
href="http://www.stopoilspeculationnow.com/" rel=nofollow><FONT
color=#000000>www.StopOilSpeculationNow.com</FONT></A> <SPAN
class=print-footnote><FONT size=1>[1]</FONT></SPAN>. Ironically, that Website’s
acronym spells out SOS. It is unclear if this was intentional; but given the
gravity of the situation, such an open letter does signify that the airlines are
essentially in need of rescuing. </P>
<P>“Our country is facing a possible sharp economic downturn because of
skyrocketing oil and fuel prices, but by pulling together, we can all do
something to help now,” the CEOs stated in the open letter.</P>
<P>They also stated: “For airlines, ultra-expensive fuel means thousands of lost
jobs and severe reductions in air service to both large and small communities.
To the broader economy, oil prices mean slower activity and widespread economic
pain. This pain can be alleviated, and that is why we are taking the
extraordinary step of writing this joint letter to our customers. Since high oil
prices are partly a response to normal market forces, the nation needs to focus
on increased energy supplies and conservation. However, there is another side to
this story because normal market forces are being dangerously amplified by
poorly-regulated market speculation.</P>
<P>“Twenty years ago, 21 percent of oil contracts were purchased by speculators
who trade oil on paper with no intention of ever taking delivery. Today, oil
speculators purchase 66 percent of all oil futures contracts, and that reflects
just the transactions that are known. Speculators buy up large amounts of oil
and then sell it to each other again and again. 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.</P>
<P>“Over seventy years ago, Congress established regulations to control
excessive, largely unchecked market speculation and manipulation. However, over
the past two decades, these regulatory limits have been weakened or removed. We
believe that restoring and enforcing these limits, along with several other
modest measures, will provide more disclosure, transparency and sound market
oversight. Together, these reforms will help cool the over-heated oil market and
permit the economy to prosper.”</P></DIV></FONT></DIV></BODY></HTML>