Oil prices hit air carriers - 미완성

Local airline companies have begun reducing flight operations and taking thrifty measures to fight soaring oil prices.
Korean Air Lines Co., the nation's largest flag carrier, said it will reduce flight services on 12 international routes in June and July.
The company also decided to temporarily suspend the service on five routes, including Cheongju to Shanghai and Daegu to Beijing.
Asiana Airlines Inc. is set to take a similar downsizing shortly.
A package of measures to boost the oil efficiency will also be added to the industry's contingency plan.
Carriers are more actively using financial hedges against the unbridled oil spike and cutting cargo to reduce fuel consumption.
A glance at the earning records of the airlines partly reflected the rising cost pressures on the industry.
Korean Air reported worse-than-expected earnings earlier this month due to high oil prices.
The company lost 325.5 billion won ($324 million) in the first quarter of the year, compared to a net profit of 130 billion won a year earlier.
Analysts said that the airline is likely to continue posting a deficit in the coming months, and that this will weigh on its share price.
Although sales rose by a double-digit rate to nearly 2.3 trillion won, fuel expenses seriously damaged the profit margins of the airline.
The cost of jet fuel jumped almost 50 percent due to soaring petroleum prices, creating a bigger-than-expected burden on the industry.
Experts also pointed out that the weakening Korean won created more of a cost burden on air carriers this year.
High oil prices are also making the skies more pricey than ever.
Airlines jacked up their international roundtrip fares by several hundred dollars in recent months, and they are also considering raising domestic fares as well.
The fares are expected to increase further by 10 to 20 percent in the second half of the year to better reflect the high fuel price.

http://www.koreaherald.co.kr/NEWKHSITE/data/html_dir/2008/05/28/200805280076.asp
Korea herald, Oil prices hit air carriers , Ko Kyoung-tae, 2008.05.28

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High oil price makes our industry torment again. Our civilization is based on oil and if oil price is higher, we has experience recession. Especially transport industry. This change in oil price will be threat for this industry, but trade between countries is tend to increase.(Or if we can not trade, we will have bad experience)
According to AP, many airline in America save the cost for oil by reduce the velocity. But saved amount is very small.

If I am stockholder of airline, I will sell the stock and buy stock of firm that treat alternative energy. Moving by air plane is still needed by people, but as time go on, people will avoid travle long distance. With alternative energy, airline can earn the money, and maintain demand for airline.

Already Boeing develop their energy source by using solar heat. Spectrolab, a subsidiary of Boeing makes battery of solar energy that efficiency is 40%. http://blog.naver.com/PostView.nhn?blogId=1000sh78&logNo=40031969030&from=search

Actually, I do not know why Korean people want to gain something without any effort. Economics increase efficiency and makes money to science revolution, of course. But in Korea, science is not important. We only concern makes money by the distributive trades, 'buy cheap but sell expensive'. Sometime technologies are stolen, makes scientist discouragement. Without respect or well compensations, people do not want to study science, and our technology will be overtaken by China, our grate competitor in the manufacturing industry.

20300393 Lee Kun Bae 12th entry