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San Francisco Air Cargo Association
News brief June 6, 2005
On June 6, 1944, the D-Day invasion of Europe took place during World War II as Allied forces stormed the beaches of
Normandy, France.
Crude oil above $55 per barrel The price of crude oil closed at $55.03 per barrel Friday, putting oil prices
up over 6 percent this week alone. Worse, the "crack spread," or the added price to distill jet fuel from crude
oil, stood at $14.50 per barrel, making the effective price almost $70 per barrel. This results in a Gulf Coast
jet fuel price of $1.65 per gallon. Jet fuel prices have climbed 15% in the past two weeks, sending costs
higher for U.S. airlines. Fuel is usually an airline's second-highest cost. Carriers have lifted fares nine times
this year to offset the higher costs. Some analysts expect jet fuel prices to continue climbing. Journal and
Constitution Every penny per gallon increase in the price of jet fuel costs an airline the size of CO $16
million on an annual basis.
On June 5, 1968, Sen. Robert F. Kennedy was shot and mortally wounded just after claiming victory in California's
Democratic presidential primary. Gunman Sirhan Bishara Sirhan was immediately arrested.
UA plans to exit bankruptcy late 2005; analysts see tough road ahead United Airlines is sticking with its
goal to exit bankruptcy by this fall, according to media reports. The airline says it may post a profit in 2006.
However, some analysts say the carrier is unlikely to leave bankruptcy this year and say the carrier's
success depends on fuel costs. Denver Rocky Mountain News
A few things I've learned NOT to say in foreign countries while a tourist:
POLAND: "Do you hire foreigners to screw in your light-bulbs?"
CHINA: "This wall isn't so great."
CANADA: "You're like Americans without money."
Merger creates huge demand for America West merchandise The public is snapping up merchandise
with the HP logo. Sales at the America West company store rose 800% after the airline announced plans to
merge with US. The America West name will disappear if the merger is completed. USA TODAY/Arizona
Republic
I've been asked to give my spin on the question of whether or not beer or wine is good or bad for a person. It's really all
about fruits and vegetables. As we all know, scientists divide everything in the world into three categories: animal,
mineral, and vegetable. We all know that beer and wine are not animal, and they are not on the periodic table of elements,
so that only leaves one thing, right? My advice: Have a burger and a beer and enjoy your liquid vegetables.
CO borrows $300 million CO and its two wholly owned subsidiaries, Air Micronesia (AMI) and Continental Micronesia (CMI),
closed on a $300 million secured loan transaction last Wednesday. The wage and benefit reductions from all but the Flight
Attendant group were instrumental to CO being able to borrow money, since the reductions helped generate a business plan
that the bankers were willing to lend against. The additional funds will enable the carrier to repay debt that is coming due, and
also will help CO fund the employee's pension plan. The improved liquidity also better positions CO to be a survivor in the
rapidly changing airline industry.
Sept. 11 commission seeks data on terror prevention Members of the Sept. 11 commission will ask the White House to
show what efforts it has undertaken to prevent terrorist attacks, The New York Times reported. The group will ask for
permission to gather information from the Central Intelligence Agency, the Pentagon and several other agencies. The
information will be used in a series of public hearings set to begin today. The New York Times (Editor's note: maybe it's just
my old-fashioned thinking - but wouldn't a series of public hearings about what we've done in this country to prevent
terrorist attacks - act like a guide book to future terrorists?)
Price of average 1,000-mile airfare down 20% In five years, the price of the average 1,000-mile flight has dropped 20% to
$118, according to the Department of Transportation. More people are flying to take advantage of the lower fares, The New
York Times reports. Meanwhile, delays have increased. The New York Times
