There’s that old saying, “It’s an ill wind that blows nobody any good.” And if ever there was an ill wind, it’s the one that has been generated by the price of oil and its effect on the airlines. But that same wind is bringing new opportunities to business aviation, with the prospect of expanded operations and the likelihood of added airplanes to the industry’s fleet.
At press time, the escalating cost of jet fuel had already brought about the collapse of several smaller regional airlines and had caused United, Continental and US Airways to park or return to lessors almost 200 aircraft from their domestic fleets and lay off several thousand employees. Earlier American Airlines announced it would reduce system capacity by as much as 12 percent after the current summer season. But according to industry observers last month, this was just the beginning, with some analysts predicting that to stem its continuing cash hemorrhage, the U.S. airline industry would have to reduce its nationwide capacity by at least 20 percent, while raising fares and further shaving what passes for service these days.
