They lost an airline and admin* efforts to rescue it were just Lucy feinting with the ball, but they still want invites to Mar-a-Lardo parties and to play on DonOLD courses.
That's a conventional answer, but one must still ask "why?" It's not like they have even the slightest reason to think he's going to do anything for them.
They're blaming Biden.
His administration blocked the Jet Blue merge.
Easy peasy.
What would have happened if Spirit had merged with Sky Blue will never be known. The bottom line is management of Spirit could not develop and implement a business model that could be successful in today's business climate.
I think it's more of a case of a business promoting cheap plane tickets that undercut their competitors' prices by a significant amount. They probably figured they'd make up the difference in quantity of tickets sold. Once fuel rose above a certain price level, that model proved impossible.
I don't think the sudden demise of a thirty year old company is evidence of a failure to implement a successful business model. I think trump put them out of business and will never have a clue that he did so.
How is it Trump's fault the management did not foresee a possible increase in oil prices which history tells us is likely at some point? They gambled and lost.
How is it Trump's fault the management did not foresee a possible increase in oil prices which history tells us is likely at some point? They gambled and lost.
No rational person, or even Spirit management would have based their business plan on an expectation that the US would randomly attack Iran, and certainly not without better strategy than was shown. A reasonable expectation for price increases is seasonal, generally up over time, and affected short-term by things like weather disruptions. If one of Spirit's planners had stood up in a meeting and said, "we've gotta plan for an unprovoked attack on Iran and a 40% or more increase in fuel prices over a couple of months time, with no end in sight", s/he would have been hooted down as a conspiracy nut.
How is it Trump's fault the management did not foresee a possible increase in oil prices which history tells us is likely at some point? They gambled and lost.
No rational person, or even Spirit management would have based their business plan on an expectation that the US would randomly attack Iran, and certainly not without better strategy than was shown. A reasonable expectation for price increases is seasonal, generally up over time, and affected short-term by things like weather disruptions. If one of Spirit's planners had stood up in a meeting and said, "we've gotta plan for an unprovoked attack on Iran and a 40% or more increase in fuel prices over a couple of months time, with no end in sight", s/he would have been hooted down as a conspiracy nut.
Regardless of the reason. Oil prices rise and fall. That is the shortcoming of management. A 30 plus year corporation should have more foresight and a "rainy day fund".
Regardless of the reason. Oil prices rise and fall. That is the shortcoming of management. A 30 plus year corporation should have more foresight and a "rainy day fund".
Airlines run on notoriously thin margins and have incredibly low reserves, discount airlines more so.
Remember after 9/11 all the airlines had to be bailed out after not flying for a week?
Hard to believe adults run them, sometimes even harder to believe that more planes don't fall from the skies.
You really have lost a step.
Eamus Catuli~AC 000000000101010202020303010304 020405....Ahhhh, forget it, it's gonna be a while.
That's a conventional answer, but one must still ask "why?" It's not like they have even the slightest reason to think he's going to do anything for them.
They're blaming Biden.
His administration blocked the Jet Blue merge.
Easy peasy.
What would have happened if Spirit had merged with Sky Blue will never be known. The bottom line is management of Spirit could not develop and implement a business model that could be successful in today's business climate.
I think it's more of a case of a business promoting cheap plane tickets that undercut their competitors' prices by a significant amount. They probably figured they'd make up the difference in quantity of tickets sold. Once fuel rose above a certain price level, that model proved impossible.
I don't think the sudden demise of a thirty year old company is evidence of a failure to implement a successful business model. I think trump put them out of business and will never have a clue that he did so.
How is it Trump's fault the management did not foresee a possible increase in oil prices which history tells us is likely at some point? They gambled and lost.
I already explained that to you.....Spirit offered low price plane tickets in the assumption that the number of customers buying tickets would make up for the drop in price by an increase in customers. They were in business for thirty three years; that does not happen with a failed business model....a failed business model would likely result in failure soon after the normal three to five year lag in any business realizing a profit. ANyway, here's a good point/counterpoint article about it. But to answer your "how is it trump's fault?" thing, it's his fault because his actions have created this result in this case.
Yeah, even if Spirit's management was obtuse and incompetent, you can't use that to avoid the fact that Trump personally, intentionally, and directly caused the problem.
Yeah, even if Spirit's management was obtuse and incompetent, you can't use that to avoid the fact that Trump personally, intentionally, and directly caused the problem.
Has Trump's actions in Iran impacted the cost of oil? Yes. What happens in the future will determine the long term impact for Trump.
It's not just the price of gasoline at the tank. It's that the price of gas affects everything else. There's a lot of truth to the truckers saying "if you got it, a truck brought it." If all transportation costs go sharply up, the cost of everything they carry will too - from the loads of stuff going to grocery stores down to the DoorDash guy that brings your fish and chips - which are also more expensive because of the increased cost of ship fuel.
So if you ran a gas station, a good manager would understand that there is some risk of fire.They'd take various safety precautions, but insurance, etc. But they shouldn't be expected to think it likely that some idiot would come along and intentionally toss a match into the tank.
It's not just the prices at the pump which will make the goods cost more.
So much more than oil comes through there. Apparently farmers had pre bought their first crop fertilizers but not a lot of their second and third.
We may be feeling that pinch right around election time.
Best Estimates by Major Category
Product Category
Approx. Share of Global Trade Through Hormuz
Notes
LNG feedstock-related gas trade
~19–20%
Qatar/UAE exports dominate �
IEA
Methanol
~30–35%
Gulf + Iran major global exporters
Urea fertilizer
~30–35%
Gulf producers are crucial exporters �
Wikipedia
Ammonia
~20–30%
Important nitrogen/fertilizer route �
Wikipedia
LPG (propane/butane)
~25–30% seaborne trade
Middle East is a major supplier �
Speed Commerce
Sulfur
Very large share, often cited near half of traded supply
Critical fertilizer input �
Speed Commerce
Bottom-Line Estimate
If you combine the main petrochemical and chemical feedstocks, a reasonable macro estimate is:
Roughly 20% to 30% of globally traded petrochemical/feedstock flows are directly or indirectly dependent on the Strait of Hormuz.
That does not mean 20–30% of all chemicals made worldwide, only the internationally traded flows of these categories.
Why It Matters
A disruption in Hormuz would hit:
plastics and packaging raw materials
fertilizer prices
industrial chemicals
fuel blending components
shipping costs
food prices (through fertilizer)
Most Exposed Markets
Asia is most exposed, especially China, India, South Korea, and Japan, because much of Hormuz chemical trade heads east. �
IEA
My Honest Summary
If oil gets all the headlines, petrochemicals are the quiet second-order shock. A Hormuz closure would likely create shortages in fertilizer and chemical feedstocks before many people realize what’s happening.
Eamus Catuli~AC 000000000101010202020303010304 020405....Ahhhh, forget it, it's gonna be a while.
Time will tell if your rant is correct. I do agree Trump needs to get this over ASAP. His mouth about how successful is overselling and it reduces the patience to deliver.
Time has already proven me correct. All you have to do is turn off Fox News and pay attention.
The actual impact will be known in November.
Other people say it's known now.
Eamus Catuli~AC 000000000101010202020303010304 020405....Ahhhh, forget it, it's gonna be a while.
Fake POTUS