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Yes, before the oil embargo. Since the DoD and NASA/the space industry were and probably still are the biggest buyers, and US airlines were completely regulate
by hga 11y ago
Yes, before the oil embargo. Since the DoD and NASA/the space industry were and probably still are the biggest buyers, and US airlines were completely regulated in that period, oil, or rather, distillate prices wouldn't have had a great effect.
For that matter, certainly nowadays higher oil prices can mean more business for airplane companies as that makes buying more efficient planes more important.
- dredmorbius 11y agoPossibly a short-term uptick, but problematic longer term. Take marine shipping as a similar case. Recent vessels were desiggned for high-cost fuel and slow sreaming, or so they tell us. But petroleum prices, and bunker fuel, have plummetted. Hulls last 20+ years. And shipping overall is down. Problem is demand-side.
- iofj 11y ago> And shipping overall is down. Problem is demand-side. Really ? All economic indicators (manufacturing index, employment, ...) seem to indicate otherwise. If problem is indeed demand side, wouldn't you see a serious crash right about now ?
- dredmorbius 11y agoWe aren't? Look up shipping indices. Baltic Dry Index, etc. All massively down since mid-2015.
- iofj 11y agoWell sure, but equities certainly don't seem to have gotten the message.
- dredmorbius 11y agoLiquidity seeks returns. Asset price inflation isn't economic growth. And a strengthening labour market would see rising wages. They're rather curiously not. For some decades now.