Peak oil has either passed or will occur any day now.  Informed ecological professionals warn us that fossil fuels must be left in the ground.  Where will the money come from to enable airlines to pay for their new aircraft?  Where will the money come from to pay for airport expansion? Who is paying for dirty coal extraction and fracking?  The answer is taxpayers!  In a half an hour I was able to find reliable evidence at the incredible amount of worldwide government subsidies that underpin economic expansion.  How can the expanding volume of CO2 and other GHGs be lowered if the obvious coalition of government policy and corporate profit objectives continue?

View references below:   Note, increases in commercial aircraft, airports, coal fired power, oil extraction and extensive subsidies.



Airlines Add Capacity Strategically As Demand For Air Travel Soars

Trefis Team Trefis Team , Contributor  8/26/2014




Boeing’s profits surge as commercial aircraft sales increase

22 Apr 2015






“The world now consumes 85 million barrels of oil per day, or 40,000 gallons per second, and demand is growing exponentially.”


“Economic life is ultimately determined by the ability of an aircraft to generate profits for the airlines that operate it both in absolute terms and also relative to alternative aircraft types that might be available as competitors at the outset or introduced later in its life. As a broad rule of thumb, current generation 100+ seat commercial jets will have an economic life of around 25 years, although plenty will still be in commercial service beyond 30 years and life extension through cargo conversion is also possible for some aircraft.”


“In reality, some industries consistently achieve excess returns (ROIC [ return on invested capital > WACC) [,weighted average cost of capital] often due to structural or regulatory factors. In any regulated industry, entry – and exit – are typically distorted in some way. The airline sector achieves one of the lowest levels of ROIC of any industry and is one of the few that consistently fails to meet its WACC.”


“According to IATA’s Jun-2013 report “’Profitability and the air transport value chain’”

“the airline industry generated an average return on invested capital (ROIC) of 4.1% in the 2004 to 2011 business cycle, a very small improvement on the 3.8% achieved in the 1996 to 2004 cycle. This remains well below the weighted average cost of capital (WACC), which falls in a range of 7% to 9%.”


“The airline sector achieves one of the lowest levels of ROIC of any industry and is one of the few that consistently fails to meet its WACC.”


“The failure to generate economic returns (i.e. where ROIC > WACC) reflects problems both with the airline industry supply chain and the structure of the industry. Every other element in the supply chain generates higher returns than airlines themselves, in some cases significantly higher.”




“A central argument of some U.S. airlines seeking government protection from foreign competition is that the Persian Gulf States have been inappropriately and unfairly helping the Gulf carriers become established with financial aid. What this report shines a bright light on is the simple fact that government assistance has long been provided on a very large scale to airlines around the world, including in the U.S.,” stated BTC [Business Travel Coalition] Chairman Kevin Mitchell.”


“In addition to federal subsidies, U.S. airlines also benefit from state subsidies. Unite Here, a union affiliated with the AFL-CIO, issued a report last month claiming that U.S. airlines receive state subsidies that it says amount to $1 billion a year.”


“It is time to ensure U.S. airlines and their workers are operating on a level playing field with their state-funded competitors in the Middle East. U.S. airlines shouldn’t have to compete with the treasuries of foreign governments who offer their state-owned carriers blank checks.”



“The petition, presented to the Parliament Petitions Committee chair Cecilia Wikström and Green MEP Keith Taylor, calls for an end to the absurd situation where European governments miss out on €40 billion every year because commercial airlines pay no tax on fuel and are exempt from VAT.”




Fossil fuels subsidised by $10m a minute, says IMF

‘Shocking’ revelation finds $5.3tn subsidy estimate for 2015 is greater than the total health spending of all the world’s governments”