Today, Senator Ron Wyden, Chairman of the Senate Energy and Natural Resources Committee sent a letter to Attorney General Eric Holder asking him to investigate the alleged price manipulation of the oil markets by three major oil companies in Europe. The European Commission recently ramped up its investigation of suspected price fixing in the oil market. This investigation occurs as the House of Representatives, at the behest of Wall Street, holds hearings criticizing the necessary oversight components ALPA supports within the Dodd Frank Wall Street Reform and Consumer Protection Act.
In March of this year, the International Air Transport Association (IATA) forecast a 1.6% profit for the global airline industry. All pilots know that fuel is the number one cost to our employers and pilots utilize professionalism and creativity to save fuel wherever safely possible. The St. Louis Federal Reserve estimates that approximately 15% of the price of a barrel of oil is due to unneeded speculation in the oil market. U.S. airlines are spending tens of billions of dollars more on fuel than they should do to oil speculation. That money should be going toward increased investments in people and equipment allowing us to compete on a level playing field.