Watch the video here:
UNITED Airlines failed to remove Dr David Dao’s luggage from a flight they dragged him off and then sent it to the wrong address, his lawyer says.
Dr Dao’s lawyer, Thomas Demetrio told the Chicago SunTimes said his client was not just missing his two front teeth when he was violented dragged off his flight in Chicago but also his luggage. Continue reading »
A man was violently dragged off of a United Airlines flight Sunday evening after it was apparently overbooked, according to passengers who were on the plane.
As The Courier Journal reports, a United spokesperson confirmed in an email Sunday night that a passenger had been taken off a flight in Chicago.
“Flight 3411 from Chicago to Louisville was overbooked,” the spokesperson said. “After our team looked for volunteers, one customer refused to leave the aircraft voluntarily and law enforcement was asked to come to the gate.
6:55 a.m. ET UPDATE: A power outage in Atlanta, which began at approximately 2:30 a.m. ET, has impacted Delta computer systems and operations worldwide, resulting in flight delays. Large-scale cancellations are expected today. All flights enroute are operating normally. We are aware that flight status systems, including airport screens, are incorrectly showing flights on time. We apologize to customers who are affected by this issue, and our teams are working to resolve the problem as quickly as possible. Updates will be available on news.delta.com.
Update 1: 5:05 a.m. ET UPDATE: Delta has experienced a computer outage that has affected flights scheduled for this morning. Flights awaiting departure are currently delayed. Flights enroute are operating normally. Delta is advising travelers to check the status of their flights this morning while the issue is being addressed.
* * *
Due to a computer outage, flights awaiting departure are currently delayed. Flights enroute are operating normally.
— Delta News Hub (@DeltaNewsHub) August 8, 2016
Delta Air Lines – the second largest airline in the world – is reporting that all flights have been suspended “due to a system outage nationwide.” Social media users have posted photos showing long lines of passengers waiting to check-in at airports. “Our systems are down everywhere. Hopefully it won’t be much longer,” Delta Air Lines said in response to a passenger’s tweet. Continue reading »
– Airline Begins Weighing Passengers, Will ‘Exclude’ Heavy Flyers (ZeroHedge, Aug 15, 2015):
In 2013, Samoan Air became the world’s first airline to charge passengers according to their their weight. Now, two years later, Uzbekistan Airways has gone one further than the pay-by-weight model. The Tashkent-based airline has installed special weighing machines in the departure gate zones to weigh people and their hand luggage, noting that some overweight people could be excluded from busy flights on smaller planes if limits are exceeded… “We are not selling seats, we are selling weight.”
– Caught On Tape: The Moment 58 People Aboard A Taiwanese Plane Thought It Was All Over (ZeroHedge, Feb 4, 2015):
Earlier this evening, shortly after take-off from the Taiwanese capital of Taipei, a commercial aircraft with 58 people on board clipped a bridge and crashed into a river. As AP reports, the death count is either 2 (aviation authority) or 3 (Central News Agency) which is simply stunning considering the following unbelievable clip…
Taiwan’s aviation authority say at least two people have been killed when a commercial flight with 58 people aboard clipped a bridge shortly after takeoff and crashed into a river in the island’s capital of Taipei.
Aviation authority director Lin Chi-ming told a news conference that two people were killed. The country’s Central News Agency said three people were killed. Continue reading »
Many, many seemingly physically fit people had to be carried out of airplanes, especailly after long-distant flights, because their body failed them and they could not walk anymore.
If ever something like that happens to somebody you know, recommend that they immediately undergo a blood purification process.
Many pilots and stewardesses know this and recommend blood purification to the victims of the aeorotoxic syndrome.
Many do it as a preventive measure themselves.
Don’t rely just on the treatment by doctors. They usually do not know what to do.
I highly recommend to mimimize your flights and if you can avoid flying altogether, especially since Fukushima.
Added: Jul 9, 2014
WDR’s Nervengift im Flugzeug – report on aerotoxic syndrome, 07/07/2014
Here is a similar video on that topic:
– Caught On Tape – Stunning Near Miss On Barcelona Runway (ZeroHedge, July 7, 2014):
Boeing has had a tough week or two – the scandal over Ex-Im bank – its cheap funding source of competitive advantage, this weekend’s train derailment of Boeing fuselages, and now, in Barcelona, a 767 and an Airbus A340 battle for the same airspace coming within a few hundred feet of total carnage.
The dramatic moment two planes almost collided on a runway in Barcelona has been captured on camera.
The footage reveals the near-miss between a Boeing 767 from Russian airline Utair and an Aerolineas Argentinas Airbus A340 at El Prat Airport in Spain.
It shows the Boeing coming in to land on the runway, making its final approach, as the Airbus, getting ready for a flight to Buenos Aires, taxis across its path.
The Boeing is forced to abort the landing, with the pilot carrying out an emergency ‘go-around’ procedure.
– Flight 370 reality check: A Boeing 777 doesn’t disappear unless governments want it to disappear (Natural News, March 30, 2014):
As the conventional news coverage of Flight 370 becomes increasingly delusional and detached from reality, for the sake of all those families and loved ones still suffering I thought it important to publish a reality check that can help bring the discussion back to some common sense.
Let’s cover five indisputable facts about governments, radar and aircraft: Continue reading »
– Defying China, U.S. bombers and Japanese planes fly through new air zone (Reuters, Nov 27, 2013):
Two unarmed U.S. B-52 bombers flew over disputed islands on a training mission in the East China Sea without informing Beijing while Japan’s main airlines ignored Chinese authorities when their planes passed through a new airspace defense zone on Wednesday.
The defiance from Japan and its ally the United States over China’s new identification rules raises the stakes in a territorial standoff between Beijing and Tokyo over the islands and challenges China to make the next move.
China published coordinates for an East China Sea Air Defense Identification Zone over the weekend and warned it would take “defensive emergency measures” against aircraft that failed to identify themselves properly. The zone is about two thirds the size of Britain.
“If the United States conducts two or three more flights like this, China will be forced to respond. If China can only respond verbally it would be humiliating,” said Sun Zhe, a professor at the Center for U.S.-China Relations at Tsinghua University in Beijing.
– Exclusive: San Francisco jetliner crash caused by airlines turning pilots into ‘computer geeks who can’t fly’ says commercial pilot (Natural News, July 10, 2013):
When flight 214 crashed last week at the San Francisco airport, killing two people and injuring dozens, many people were in a state of disbelief. How could a Boeing 777 — the “Titanic” of commercial airliners — be piloted so carelessly that the pilot seemingly flew it into the seawall and caused the accident?
But that’s the problem, you see: There are no more pilots flying these planes. The real pilots have nearly all retired, leaving a bunch of “computer geeks” who have almost no flying skills and only know how to operate the computerized, automated flight equipment which is subject to catastrophic failure.
That’s what “Pilot X” told me in a phone interview. His identity is being secret for his own protection, but he recently retired from over two decades of flying Boeing’s largest aircraft for major U.S. airlines. He has received more actual flight time than 99% of today’s active commercial pilots, and he’s an expert in Boeing flight automation equipment. His testimony, below, reveals insider details that only a real commercial pilot would know.
Airlines are trying to dumb down the pilots
– The Dream Is Over As FAA Grounds Nightmareliner (ZeroHedge, Jan 16, 2013):
The pain for Boeing never stops. Just out from Reuters:
- U.S. FAA says requiring airlines to temporarily stop flying Boeing’s 787 Dreamliner. #BREAKING
- FAA: Battery failures on Boeing 787s could damage critical systems and structures, spark fire, if not corrected
- FAA: Will work with Boeing, airlines to develop corrective action plan to resume 787 operations as “quickly and safely as possible”
- FAA: Decision to ground Boeing 787s prompted by second incident involving lithium ion battery failure
- FAA: Will also examine Boeing 787 batteries as part of comprehensive review announced last week
So, will Transportation Secretary Ray LaHood (i.e., the US government) perhaps reassess his conclusion from last week that the Dreamliner is “safe” or perhaps this too is just more teething problems… Or merely an ultra aggressive case of industrial sabotage from EADS? In other news, perhaps it is time to find a more appropriate name for the Dreamliner? Continue reading »
– NaturalNews exclusive: UNITED-Continental airline pilots forced to fly with as little as 3 hours’ sleep, ‘worked until we drop’ (Natural News, Aug 14, 2012):
Whistleblower pilots flying for United / Continental airlines warn that they are being “worked until we drop,” forced to pilot consecutive long-distance flights with as little as three hours’ sleep. In a series of secret meetings with NaturalNews, three United / Continental pilots described the “utter hell” they are being put through:”We are being worked until we drop,” one pilot to me in a recent face-to-face meeting in Texas. “United-Continental is flying us in violation of FAA legal requirements. Pilot fatigue is at red alert levels. This is an accident waiting to happen.”
The FAA requires pilots to have at least 8 hours of rest in any given 24-hour period. From the FAA’s website:
…a pilot is not allowed to accept, nor is an airline allowed to assign, a flight if the pilot has not has at least eight continuous hours of rest during the 24-hour period. In other words, the pilot needs to be able to look back in any preceding 24-hour period and find that he/she has had an opportunity for at least eight hours of rest. If a pilot’s actual rest is less than nine hours in the 24-hour period, the next rest period must be lengthened to provide for the appropriate compensatory rest.
But NaturalNews was told that United-Continental is operating in blatant violation of this rule. One pilot explained to me, in detail: Continue reading »
– American Airlines files for bankruptcy protection; incoming CEO says flights may be cut (Washington Post, Nov. 29 2011):
DALLAS — The parent company of American Airlines filed for bankruptcy protection Tuesday, seeking relief from crushing debt caused by high fuel prices and expensive labor contracts that its competitors shed years ago.
The company also replaced its CEO, and the incoming leader said American would probably cut its flight schedule “modestly” while it reorganizes. He did not give specifics. American said its frequent-flier program would be unaffected.
AMR Corp., which owns American, was one of the last major U.S. airline companies that had avoided bankruptcy. Competitors used bankruptcy to shed costly labor contracts, unburden themselves of debt, and start making money again. Delta was the last major airline to file for bankruptcy protection, in 2005.
American — the nation’s third-largest airline and proud of an 80-year history that reaches back to the dawn of passenger travel — was stuck with higher costs and had to match its competitors’ lower fares or lose passengers.
Other airlines also grew by pursuing acquisitions and expanding overseas. American was the biggest airline in the world in 2008, but has been surpassed by United, which combined with Continental, and Delta, which bought Northwest.
And no thug cop dared to punch them in the face or to pepper spray them?
– Union Airline Pilots Occupy Wall Street (Forbes, Sep. 29, 2011):
Over 700 hundred Continental and United pilots, joined by additional pilots from other Air Line Pilots Association (ALPA) carriers, demonstrate in front of Wall Street on September 27, 2011 in New York City.
Hundreds of uniformed pilots, standing in stark contrast to the youthful Occupy Wall Street protesters, staged their own protest outside of Wall Street over the past couple of days, holding signs with the picture of the Hudson river crash asking “What’s a Pilot Worth” and others declaring “Management is Destroying Our Airline.” This comes after pilots at United asked a federal judge to halt the merger with Continental, arguing that the whole thing is proceeding too quickly.
For your (dis)information only.
The rain water was tested by government labs:
Aluminum (780 times over the save level.)
Arsenic (593 times over the save level.)
Manganese (4000 times over the save level.)
Barium (300 times over the save level.)
Zinc (8000 times over the save level.)
Iron (2000 times over the save level.)
Boron (4000 times over the save level.)
Tags: Airlines, Barium, Chemicals, Chemtrails, CIA, DARPA, FBI, FSB, Global News, Government, Israel, John F. Kennedy, Military, Missiles, NSA, Nuclear weapons, Politics, Project Clover Leaf, Richard Nixon, Russia, Scalar Weapon, Society, Technology, Tesla, Tom Bearden, U.S.
Hundreds of flights to and from France will be cancelled on Tuesday with another 24-hour strike planned by air traffic controllers.
Half the flights in and out of Paris Orly airport and nearly a third of all flights to all other airports will be scrapped, according to the French civil aviation authority.
Ryanair has already cancelled 200 flights and British Airways says it expects “delays and disruption” to its services.
A similar walkout last week forced hundreds of cancellations, with short-haul flights the worst affected.
Charles de Gaulle airport has already reported disruption to flights on Monday after a number of refuelling staff went on strike.
Airlines running short-haul flights have been told to carry enough fuel for their return journeys, following strikes at 12 of the country’s oil refineries. It is reported that around a quarter of petrol filling stations across the country have run dry.
Ryanair is planning to run flights where passengers stand during the journey at a cost of just £5 per ticket.
Michael O’Leary, the airline’s chief executive, will set out proposals today that include charging customers to use the loo.
A standing area with “vertical seats” will be introduced at the back of its fleet of 250 planes.
He said that charging customers £1 to make use of facilities would encourage travellers on one hour flights to use lavatories at the airport instead of on the aircraft.
The Irishman said he intended to introduce coin-operated loos and added: “The other change we’ve been looking at is taking out the last 10 rows of seats so we will have 15 rows of seats and the equivalent of 10 rows of standing area.” Continue reading »
Pilots at British Airways are moving millions of pounds out of the company’s lucrative pension scheme amid fears it will go bust.
Workers fear the troubled company will fail to deliver on its pension promises after the airline announced this week that its pension deficit had reached almost £4 billion.
Experts said it showed a “lack of faith” among the company’s own staff in its pension scheme.
It follows a vote by thousands of cabin crew to strike over Christmas over changes to working conditions.
Pilots who have spent their entire career with British Airways can expect to retire on a pension of more than £100,000 a year, according to pension advisers.
If the BA pension scheme collapsed, a lifeboat fund known as the Pension Protection Fund would step in. But the fund pays out a maximum of almost £29,000 a year.
It means pilots and other well-paid BA workers could lose out on tens of thousands of pounds a year during their retirement.
One leading pensions’ adviser has been approached by more than 40 pilots and other pension scheme members at BA in the last few days about transferring their money – with one worker asking to move a pension pot of £2.2 million out of the company’s pension scheme.
Almost 7,000 British Airways staff have agreed to take part in cost-saving measures, including 800 who said they will work unpaid for up to a month, the airline has announced.
Almost 7,000 BA staff have agreed to take a pay cut
Of the 40,000-strong workforce, 6,940 employees volunteered for the measures – with most opting for unpaid leave – which the company said will save up to £10 million.
Chief executive Willie Walsh, who has already announced that he will work unpaid for the month of July, said: “This is a fantastic first response. I want to thank everyone who has volunteered to help us pull through this difficult period.
“This response clearly shows the significant difference individuals can make.”
Options offered to staff included volunteering for between one and four weeks’ unpaid leave or unpaid work, with the pay deduction spread over three or six months.
Staff who have offered to work unpaid will still receive shift allowances and other payments, although they will forego their basic pay.
BA said around 4,000 staff had volunteered for unpaid leave, 1,400 will switch to part-time work and 800 put their names forward for unpaid work, while 740 overseas staff also volunteered to take part in the cost-saving drive.
The airline has been looking to slash costs as part of its survival plan after unveiling an annual loss of £400 million.
Around 2,500 jobs have been cut since last summer and the airline wants to shed another 3,000 posts across its business.
British Airways planes on the tarmac at Heathrow Airport. BA ground staff have already rejected the company’s proposals by six to one
British Airways boss Willie Walsh is asking his 40,000 staff to work for nothing to save the airline.
The astonishing plea comes as BA faces what Mr Walsh says is a ‘fight for survival’.
The company has written directly to its 40,000 employees asking them to volunteer for up to four weeks of unpaid work.
Mr Walsh announced last week that he would work unpaid for the month of July – forgoing £61,000 in salary. His chief financial officer Keith Williams is also working unpaid for the month.
The appeal to staff goes much further than earlier requests for a pay freeze or unpaid leave.
It also undermines the unions with whom BA is negotiating a wider package of cost- cutting measures.
But it infuriated cabin crew. One said: ‘BA now stands for “B***** all” because that’s what they want to now pay us. That’s the calibre of management we have at British Airways.’
The puzzling crash of Air France’s Flight 447 killed two of the world’s “most prominent” illegal arms trade and international drug trafficking foes, according to a little-noticed report.
In a revelation sure to fuel conspiracy theories over the plane’s demise, the report reveals that two key figures in the neverending internecine battle against global arms and drug trafficking perished when the plane abruptly fell out of the sky. Both were particularly active in efforts to stem illegal arms trading in Latin America.
A 39-year Argentinian man, Pablo Dreyfus, was said to be a major player in an effort by Brazilian authorities to stop flow of arms to drug gangs in Rio. He was a consultant for Small Arms Survey, a Geneva-based thinktank.
Another consultant for Small Arms Survey also died in the crash, “Ronald Dreyer, a Swiss diplomat and co-ordinator of the Geneva Declaration on Armed Violence who had worked with UN missions in El Salvador, Mozambique, Azerbaijan, Kosovo and Angola,” according to Scotland’s Sunday Herald.
“Both men were consultants at the Small Arms Survey, an independent think tank based at Geneva’s Graduate Institute of International Studies,” the Herald reported. “The Survey said on its website that Dryer had helped mobilise the support of more than 100 countries to the cause of disarmament and development.”
Dreyfus and Dreyer were reportedly traveling to Switzerland to “present the latest edition of the Small Arms Survey handbook, of which Dreyfus was a joint editor.”
Dreyfus advocated for “stringent labeling” of ammunition produced by weapons companies, the paper said. He averred that such labeling would greatly aid the tracking of arms acquired by criminals.
“Scientists, former pilots and aviation pressure groups have accused the industry of knowing about the problem for decades and doing little to tackle it. But reports linking exposure to contaminated air with long-term harm to health have led to an increase in passengers and crew seeking redress, according to lawyers in the United States.”
Samples taken secretly from the planes of popular airlines have raised fresh concerns over passengers inhaling contaminated air.
Fresh concerns about whether passengers could be inhaling contaminated air on aircraft have resurfaced, after undercover investigators claimed to have found high levels of a dangerous toxin on board several planes.
As part of an investigation by a German television network, ARD, and Schweizer Fernsehen (Swiss television), 31 swab samples were taken secretly last month from the aircraft cabins of popular airlines.
These were analysed in laboratories at the University of British Columbia, under the supervision of Prof Christian van Netten, a leading toxicologist.
Twenty-eight were found to contain high levels of tricresyl phosphate (TCP), an organophosphate contained in modern jet oil as an antiwear additive, which can lead to drowsiness, headaches, respiratory problems or neurological illnesses.
Scientists refer to the condition as Aerotoxic Syndrome. Dr Mackenzie Ross, a clinical neuropsychologist at University College London, says the illness may be affecting up to 200,000 passengers each year.
The airline industry reported on Thursday an “unprecedented and shocking” plunge in global air cargo traffic.
Air freight accounts for 35 per cent of the value of goods traded internationally and the International Air Transport Association said traffic volumes had fallen by 22.6 per cent year-on-year in December.
Giovanni Bisignani, Iata director general, said, “there is no clearer description of the slowdown in world trade. Even in September 2001 (after the 9/11 terrorist attacks in the US), when much of the global fleet was grounded, the decline was only 13.9 per cent.”
“there is no clearer description of the slowdown in world trade,” … oh, wait a minute:
US to be CUT OFF from World – Baltic Dry Index Falls 93%
International passenger traffic fell in December by 4.6 per cent. Iata said the drop was less dramatic than in cargo, as volumes had been supported by year-end leisure travel that had been booked in advance.
ROME: Alitalia might stop flying within a week if unions don’t change course and accept a rescue plan offered by Italian investors, Italy’s transport minister said Sunday.
The only hope for the survival of Italy’s bankrupt flagship airline is for union leaders to agree to the investors’ terms, and for the government to convince the investors to put the deal back on the table, Minister Altero Matteoli told Sky TG24 TV.
“Alitalia has only very few days left, surely less than a week,” unless a deal is made, he said.
The investors withdrew their offer to acquire some of Alitalia’s more potentially profitable assets after some unions, including pilots’ representatives, rebuffed the deal.
Other unions for Alitalia employees have accepted the plan, which calls for some 3,250 layoffs among the airline’s 20,000 workers, the elimination or reduction of loss-making routes and the sale of many aircraft.
Investors are fleeing from the U.S. stock market, Sending the Dow to Worst June Since Depression, looking for places to secure their wealth.
There is an unprecedented cash flow of ‘hot money’, which is usually defined as short-term global speculative funds moving among financial markets in search of the highest short-term return, moving into China:
Is China flooded with ‘hot money’ because of an expected meltdown in the U.S.?
Let’s further examine the prospects that we would experience a total crash of the entire financial system:
We have seen the Dow suffering it’s worst 1st half since ‘70 accompanied by a lot of bad news for the economy like:
– US: Big Trouble for General Motors, Crysler and Ford
– America’s Aviation System About To Collapse
– Starbucks to cut as many as 12,000 positions
And now the corporations are cheating you at the supermarkets: America’s Shrinking Groceries
The Dollar is being destroyed by the Federal Reserve, which has created in the last three years 4 Trillion Dollars of new money out of thin air: Ron Paul on Iran and Energy June 26, 2008
Ron Paul is further warning that: This coming crisis is bigger than the world has ever experienced
and that: We are at the beginning of a huge Dollar bubble.
The US Federal Reserve intentionally created inflation and that is why its credibility has fallen “below zero” and that is why Barclays warns of a financial storm as Federal Reserve’s credibility crumbles.
More dire warnings:
– RBS issues global stock and credit crash alert
– Morgan Stanley warns of ‘catastrophic event’ as ECB fights Federal Reserve
– Central bank body warns of Great Depression
– Credit crisis expands, hitting all kinds of consumer loans
– How Low Can The Dollar Go? Zero Value
Investors like Jim Rogers are telling us to “Avoid The Dollar At All Costs” and have told us that the Federal Reserve will fail and that Bernanke should be fired (alhough that isn’t possible because of his contract), because he has created the worst recession in the end and thats why he said: “Abolish the FED” on CNBC 2008.03.12.
The Fed is only doing good for the big corporations on Wall Street. If you would continuously come close to bankruptcy, because you have irresponsibly wasted your money, who will continuously give you billions of Dollars and bail you out, because you might fail? So I agree totally with Marc Faber: ‘Misleading’ Fed Should Let Banks Fail.
Well those corporations are said to be to “Big to Fail”, but they eventually will fail, because the entire system will fail and the Dollar is being destroyed in the process and so the people will end up with nothing, because their life savings are worthless paper. You are already paying the price for this policy, but maybe you haven’t looked at it that way:
The Price Of Food: 2007 – 2008
What inflation really is, is a taxation on monetary assets. And guess who is paying for all of that?
I just love this video. A must see:
The Stock Market and the Monetary System are on the verge of collapse!
Tags: 9/11, Airlines, Bank Failure, Barclays, Ben Bernanke, Bubble, China, Citigroup, Condoleezza Rice, Constitution, Crash, Credit Crisis, Dennis Kucinich, Depression, Dick Cheney, Dollar, Donald Rumsfeld, Dow Jones, ECB, Fed, Federal Reserve, Food Prices, General Motors, George Bush, Gold, Government, Great Depression, Hyperinflationary Depression, IMF, Inflation, Iran, Meltdown, Monetary System, Morgan Stanley, Mortgage crisis, Mortgages, New World Order, Oil, Oil Prices, Pentagon, Ron Paul, Silver, Starbucks, Stock Market, U.S., Wall Street, War
Vincent Quinones works on the floor of the New York Stock Exchange Wednesday after the Federal Reserve issued a mixed assessment of the economy. Yesterday, the Dow Jones industrial average closed down 358 points. (By Andrew Harrer — Bloomberg News)
So much for that second-half rebound.
Truth be told, that was always more of a wish than a serious forecast, happy talk from the Fed and Wall Street desperate to get things back to normal.
It ain’t gonna happen. Not this summer. Not this fall. Not even next winter.
This thing’s going down, fast and hard. Corporate bankruptcies, bond defaults, bank failures, hedge fund meltdowns and 6 percent unemployment. We’re caught in one of those vicious, downward spirals that, once it gets going, is very hard to pull out of.
Only this will be a different kind of recession — a recession with an overlay of inflation. That combo puts the Federal Reserve in a Catch-22 — whatever it does to solve one problem only makes the other worse. Emerging from a two-day meeting this week, Fed officials signaled that further recession-fighting rate cuts are unlikely and that their next move will be to raise rates to contain inflationary expectations.
Since last June, we’ve seen a fairly consistent pattern to the economic mood swings. Every three months or so, there’s a round of bad news about housing, followed by warnings of more bank write-offs and then a string of disappointing corporate earnings reports. Eventually, things stabilize and there are hints that the worst may be behind us. Stocks regain some of their lost ground, bonds fall and then — bam — the whole cycle starts again.
It was only in November that the Dow had recovered from the panicked summer sell-off and hit a record, just above 14,000. By March, it had fallen below 12,000. By May, it climbed above 13,000. Now it’s heading for a new floor at 11,000. Officially, that’s bear market territory. We’ll be lucky if that’s the floor.
In explaining why that second-half rebound never occurred, the Fed and the Treasury and the Wall Street machers will say that nobody could have foreseen $140 a barrel oil. As excuses go, blaming it on an oil shock is a hardy perennial. That’s what Jimmy Carter and Fed Chairman Arthur Burns did in the late ’70s, and what George H.W. Bush and Alan Greenspan did in the early ’90s. Don’t believe it.
Truth is, there are always price or supply shocks of one sort or another. The real problem is that the underlying fundamentals had gotten badly out of whack, making the economy susceptible to a shock. The only way to make things better is to get those fundamentals back in balance. In this case, that means bringing what we consume in line with what we produce, letting the dollar fall to its natural level, wringing the excess capacity out of industries that overexpanded during the credit bubble and allowing real estate prices to fall in line with incomes.
The last hope for a second-half rebound began to fade earlier this month when Lehman Brothers reported that it wasn’t as immune to the credit-market downturn as it had led everyone to believe. Lehman scrambled to restore confidence by firing two top executives and raising billions in additional capital, but even that wasn’t enough to quiet speculation that it could be the next Bear Stearns.
Since then, there has been a steady drumbeat of worrisome news from nearly every sector of the economy.
American Express and Discover warn that customers are falling further behind on their debts. UPS and Federal Express report a noticeable slowdown in shipments, while fuel costs are soaring. According to the Case-Shiller index, home prices in the top 20 markets fell 15 percent in April from the year before, and Fannie Mae and Freddie Mac report that mortgage delinquency rates doubled over the same period — and that’s for conventional home loans, not subprime. United Airlines accelerates the race to cut costs and capacity by laying off 950 pilots — 15 percent of its total — as a number of airlines retire planes and hint that they may delay delivery or cancel orders of new jets from Boeing and Airbus. Goldman Sachs, which has already had to withdraw its rosy forecast for stocks, now admits it was also too optimistic about junk bond defaults, and analysts warn that Citigroup and Merrill Lynch will also be forced to take additional big write-downs on their mortgage portfolios.
Tags: Airbus, Airlines, Alan Greenspan, Bank Failure, Boeing, China, Citigroup, Depression, Fannie Mae, Fed, Federal Reserve, Freddie Mac, General Motors, George Bush, Goldman Sachs, Hedge Funds, India, Inflation, Jimmy Carter, Lehman Brothers, Meltdown, Merrill Lynch, Mississippi, Oil, Oil Prices, Rate Cut, Recession, Stock Market, Unemployment, Wall Street
Industry officials and analysts urge Washington to act to avert a collapse.
New York – America’s aviation system could be at risk of collapsing by the beginning of next year.
That warning from aviation experts has prompted some industry leaders to call for re-regulation, something considered almost heresy until now. Others are urging Washington to do more to rein in the oil speculators pushing up fuel costs.
But there is agreement among airline officials and analysts that Washington and the two presidential candidates need to recognize the severity of the crisis and take some action now to avert an economically crippling collapse in the near future.
“Unless something is done to move toward some kind of fix, we’re going to see every one of our major airlines in bankruptcy,” says Robert Crandall, former chairman of American Airlines. “If that isn’t enough of a crisis to alert everybody, then I don’t know what it will take.”
As a result of the spike upward in oil prices, almost every major airline is now losing millions of dollars each quarter.
Unless the price of oil comes down, most are expected to run out of cash by the end of this year or the beginning of next. In a bid to stave off bankruptcy, they’re already retrenching. They plan to lay off an estimated 25,000 employees, park hundreds of planes, and cut the number of flights they offer.
In addition, a recent study by the Business Travel Coalition, which represents corporate travel managers, estimates that 100 regional and 50 major airports nationwide will lose some of or all their air service by the end of the year.
“I’ve been trying to turn on the emergency sirens to raise awareness in Washington and back home,” says Kevin Mitchell, chairman of the Business Travel Coalition in Radnor, Pa. “And I think people are finally beginning to [wake up].”
Airline officials visit Washington
Representatives of the major carriers were in Congress this week, urging action to discourage speculation in the oil markets. Some analysts blame that speculation for the almost doubling of the price of jet fuel in the past year.
The soaring oil price will drive “weaker” rivals out of business, easyJet claimed this morning, despite seeing its own losses treble over the last six months.
With oil hitting a new record of $122 a barrel yesterday, and Goldman Sachs forecasting it could hit $200 a barrel this year, easyJet predicted carnage in the airline industry.
“If the oil price stays high we will see a number of weaker airlines disappear over the next 12 to 24 months,” chief executive Andrew Harrison predicted.
The budget airline reported a 15% jump in passenger numbers for the six months to March 31, with revenue growing 24% to £892.2m. But its pre-tax losses spiralled to £57.5m, triple the loss it made a year ago. The loss, which was expected following the firm’s profit warning in March, was primarily caused by dearer jet fuel, which costs 80% more than a year ago.
Every $10 increase in the cost of a barrel of oil cuts around £2.5m off easyJet’s profits. Harrison claims the company’s relatively young fleet – its 157 planes are three years old on average – give it an edge.
“A quarter of Europe’s short-haul aircraft are at least 15 years old, so they burn 20% more fuel than our planes,” he said.
Rival airline Aer Lingus yesterday blamed fuel costs for an increase in its baggage charges. From tomorrow, it will cost £12 to check in a bag at the airport. Continue reading »
The tax provisions of the Foreclosure Prevention Act, which consumer groups and labor leaders say amount to government handouts to big business, show how the credit crisis, while rattling the housing and financial markets, has created beneficiaries in the power corridors of Washington.
It also shows how legislation with a populist imperative offers a chance for lobbyists to press their clients’ interests.
This has proved especially true on the housing legislation, which many lawmakers and lobbyists view as one of the last opportunities before Congress grinds to a halt amid election-year politics.
In the Senate bill, the nation’s biggest home builders, some now on the verge of bankruptcy, won a provision that would let them claim millions in tax refunds by charging their current losses against the huge profits they made three or four years ago. Other struggling industries would benefit from this provision.
Sen. Christopher J. Dodd, Democrat of Connecticut, was the main author of the Senate bill meant to help homeowners.
(The ones who will really benefit from this are, like always, the corporations.
And guess who will pay for these tax breaks in the end? – The Infinite Unknown)
Tags: Airlines, American Airlines, automakers, bill, Businesses, Corporations, Economy, financial market, Ford, Foreclosures, General Motors, Goodyear Tire, Housing Bill, Lobbyists, Northwest Airlines, Rubber., Senate, Wall Street, Washington