Jet Fuel Price Dumps on Baggage
It was bound to happen. First there was the bag of Goldfish instead of a lunch and now Air Canada has levied a $25 surcharge on each extra suitcase. But the meteoric rise of oil has to leak out somewhere and baggage is just the start.
Massive quarterly losses for U.S. airlines have led to increases of 3 to 6% since last fall when the rise in oil was steep but not to the degree as it has in the past week. In fact analysts say that fares would have to up to go up 15 -10% to keep pace with a $120US barrel oil price.
What this means for Nova Scotia – and the rest of the world – is that air travel, and travel in general, will be a rationed commodity. The unfettered days of the 1970′s through to now heralded world travel never dreamed of before and that many be flatlining. (Signs of it were in effect at the turn of the decade when internet teleconferencing began replacing face-to-face business meetings.) Tourism-based areas rely on travelers but if the price of an airline ticket climbs higher then people will stay home.
But what will the stay-at-homes do there? Well, when the ferry service to Nova Scotia from Maine was interrupted and the schedules changed the U.S. traveler was not as anxious to come here and the innkeepers were hit by less hotel room night at their establishments. However, whet they have noticed is that there a lot more locals and central Canadians coming here.
Now, with the Western Hemisphere Travel Initiative on the books (requiring passports for air travel to the US and the rise in cost of fuel we might see more locals discovering their own back yard.
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