As cost of oil stays high, 7000 airline jobs disappear.

"It’s a nice round number, and looks pretty darn good
from overhead, especially when several hundred Boeing
employees are actually forming the numerals."

Archive picture from:
http://boeingblogs.com/randy/archives/2007/08/7000.html

Unfortunately, with oil prices remaining above $128 per barrel, this is costing United Airlines 7000 jobs and this sounds permanent as they will be looking to raise cash.

America's second biggest airline said it will reduce its workforce by 13 per cent - or 7,000 staff - and axe more than a sixth of domestic routes in a desperate attempt to cut costs to cope with the surging cost of fuel.http://business.timesonline.co.uk/tol/business/industry_sectors/transport/article4380298.ece

A lot of families are going to have to find other ways to pay Freddie Mac and Fannie May their mortgages. Ooops, I forgot, the government (tax payers) are going to bail these two institutions out with $25 billion dollars ($25,000,000,000). This is one fifth of the 125 billion cost of S&L bailout crisis, except this bailout only helps two companies, no where near one fifth of the 747 institutions as in the 1980s... I wonder who will be next? http://money.cnn.com/2008/07/22/news/economy/cbo_gse_rescue_costestim/?postversion=2008072216

So United Airlines has plunged to a $2.73bn ($273 000,000,000) loss in the quarter compared to a profit of $274m ($000,274,000,000) during the same period last year, when oil was $73.03 which at the time was considered high. I can't be bothered to draw up a graph to show all the differences as I am sitting with a good glass of wine, but it sounds like a pretty astronomical difference to me. Sorry to spell out the bad news. The good news is on the way, there is lots of it. Take this one as an example:

"My life is better, not worse, without a car"
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/07/22/cctracy122.xml

For once, I am at the forefront of a trend. Four months ago, I gave up my car. The decision was, in truth, rather forced upon me by the fact that I had to return it to my previous employer when I moved jobs. Still, I decided not to get another one.

The experiment has been a triumph. Not only has it become clear that this was a financially astute move, what with surging petrol prices and my habit of forgetting to pay the congestion charge.

It also turns out that I am at one with the zeitgeist. Our attitudes to travel are changing - trains, buses and bikes are in, cars and planes are out - and I just may be an agent of change.