FUEL TAX THREATENS TO SAP AIRLINE PROFITS, AVIATION WEEK & SPACE TECHNOLOGY REPORTS; Industry Economist Observes 'Finances Are In Shambles'.
NEW YORK--(BUSINESS WIRE)--July 7, 1995--The July 10th edition of Aviation Week & Space Technology reports that the U.S. airline industry's second-quarter profits are expected to reach record levels, despite a cooling domestic economy. Operating profits Operating profit (or loss)
Revenue from a firm's regular activities less costs and expenses and before income deductions.
See operating income. might reach as high as $1.8 billion, up from the $1 billion in 1994's second quarter. Net profits also might set a record. Estimates range from $600-900 million.
But, it is not yet time for the airlines to celebrate. They are facing the imposition of a fuel tax of 4.3 cents a gallon, effective October 1st. That could slash profits by half. One industry economist says, "I'm very concerned that lawmakers will look at second-quarter earnings and conclude that, financially, the industry is out of the woods. The fact of the matter is our finances are shambles." The industry suffered record losses in the early 1990s.
This week's issue also details the following:
-- Atlantis Space Crew Balked balk
v. balked, balk·ing, balks
1. To stop short and refuse to go on: The horse balked at the jump.
2. At Some Testing: After more than 100 days on Russia's Mir space station, the three crew members were testy tes·ty
adj. tes·ti·er, tes·ti·est
Irritated, impatient, or exasperated; peevish: a testy cab driver; a testy refusal to help. at times about being poked, prodded and pricked in the name of science on board the shuttle Atlantis. All three, including NASA's Norm Thagard, balked at performing some procedures.
Mir commander Vladimir Dezhurov Vladimir Nikolayevich Dezhurov (Russian: Влади́мир Никола́евич Дежу́ров flatly refused to get into a bag called a lower body negative pressure device. The apparatus, which causes body fluids to shift toward the legs as they would on Earth, is being evaluated as an aid to avoid lightheadedness and fainting that can accompany a return to gravity. Flight engineer Gennady Strekalov Gennady Mikhailovich Strekalov (Russian: Геннадий Михайлович Стрекалов) (October 26 1940 - December 25, 2004) was an did get into the bag, but refused extra steps that would have helped scientists to gather data. Thagard was receptive receptive /re·cep·tive/ (re-cep´tiv) capable of receiving or of responding to a stimulus. to the scientific evaluation, but rejected the device for his personal conditioning, preferring to stick to a treadmill.
-- Jupiter-bound: The Galileo spacecraft spacecraft
Vehicle designed to operate, with or without a crew, in a controlled flight pattern above Earth's lower atmosphere. Since streamlining is not needed in the high vacuum of this environment, a spacecraft's shape is designed according to its mission (see is scheduled to release its probe of Jupiter late next week. If all goes well, the probe will take the first sampling of an outer planet's atmosphere. The probe is scheduled to activate shortly before a December parachute parachute, umbrellalike device designed to retard the descent of a falling body by creating drag as it passes through the air. The development of modern aircraft has led to many experiments in the aerodynamic problems of parachute design, with the result that the descent into Jupiter.
Aviation Week & Space Technology, published by The McGraw-Hill Companies, is the world's leading journal for technology, business and operations in the global aviation, aerospace and defense industries.
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