Record oil prices are pushing the cost of jet fuel to nosebleed heights, forcing many operators and their suppliers into retrenchment and decline - even bankruptcy. In the matter of a few months, the aviation industry has slipped from prosperity into red ink, uncertainty and doubt. As already lean operators desperately look for new ways to cut costs, one of the first casualties is maintenance, repair and overhaul (MRO). The U.S. credit crunch, sparked by the sub-prime mortgage meltdown, has generated a recession in America and turmoil in global financial markets. In countries around the world, rising unemployment and energy costs are dampening stock prices, consumer confidence and discretionary income. It all adds up to a dramatic decline in demand for air travel. Combine these interrelated factors with oil prices that could conceivably reach $200/bbl, and the aviation industry faces a "perfect storm" of woes.
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