Summary Blog of the year

1.Canada's airlines struggle to fill their planes
By Scott Deveau, Post April 6, 2009 8:34 AM
2.Oil falls toward $50 tracking stock market
04.06.09, 01:11 PM EDT
Summary
I found these two news are quite interesting because some how they are connected to each other and related to the book. Crude oil was down US$2.51 to US$50.00 a barrel in USA. At the same time London Brent crude fell $1.81 to $51.65 a barrel as well. oil prices have been falling since June, 2008 by the time the economic recession occurred.
Why was the oil price falling? i think the price of oil on the international markets is determined by a combination of forces. Supply and demand are the major factors that affected the crude oil market.
The second article i found was about Canada's airlines continued to reduce capacity in order to meet demand. The reason i put these two articles together is i want to make a connection between them.
West Jet was unable to keep up with its capacity deployment plans, leading to a 4.7percentage point drop in its load factor.
Air Canada's load factor downed by 2.2 percentage points in March to 80.7% after its system-wide traffic fell 13.5% and outstripped its capacity cuts of 11.1% year over year. Its international routes were falling 15.3% and 15.2% on those routes respectively.

Connections
The connections these two articles have to the book is the delivery expense. Delivery expense is ex termly important for merchandising business which buys goods and sells them at a profit. When a wholesaler or a retailer buys goods and sells to the public, the price of their products or merchandises are all affected by their delivery expense, because it is a cost related to the good purchased and must be include in the calculation of cost of goods sold.
And Cost of goods sold plus your gross profit is your sales. Sales are the total amount of the price of each individual product you sold together. Transportation charges on incoming goods are recorded in Delivery Expense, but if the company has its own trucks, transportation charges may turn into gasoline bills, oil, repairs. Transportation companies, heavy industries and all kind of merchandising business rely heavily on the price of crude oil. Well at the end the price of crude oil is affecting everyone in the world.

Conclusion
The price of crude oil is falling caused by polities, wars and the global economic condition. The oil price had been increasing since the 70's

I think the main reason the oil price is falling is because of the global recession. Less people are willing to spend their money like before recession kinda drags the global economic backward. Even though now is the 21Th century Air transportation is
still very expensive to afford and now there are less people willing to travel to other country by Ari plane because of the recession. West jet and Air Canada had both drop their load factor by a very significant percentage. If the crude oil price is till rising at the rate like one year ago, I think they would go bankrupt by now.
Dropping the oil price kinda help improving the economic condition. Transportation business such as Air Canada, West jet and Merchandising business could lower their deliver expense and to survive from bankruptcy.