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Sat, Mar 27, 2004

Could Rising Fuel Prices Stymie GA Growth?

GAMA Thinks So

Just when you thought things were getting so much better...

Fuel prices are "accelerating faster than anyone imagined, though I don't think it changes overall where trends are going" in general aviation, said Ed Bolen, president of the General Aviation Manufacturers Association.

Speaking Thursday to the FAA's annual forecast conference, Bolen said, while the industry seems to be rebounding after the 9/11 disaster, the recovery is by no means complete and could be jeopardized by a surge in fuel prices.

"If fuel costs only go up 2 or 4 or 6 percent, that isn't make-or-break for a huge percentage of the population" that buys airplanes, he said, as quoted in the Wichita Eagle. "But if people say, 'I'm not as comfortable with the economy as I was six weeks ago because of fuel prices,' then (sales) could become a greater challenge."

Still, Bolen said he's hopeful for recovery in the aviation sector. What he (and a lot of other Americans) would like to see is oil, now priced at almost $36 a barrel, down around $20-$25.

FMI: www.generalaviation.org

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