A way to play the global economy decline is by shorting the airline industry. Here we turn to underground investor Martin Denholm, writing in today’s Smart Profits Report. The problem with the airline industry is that in business terms, it can be “lose-lose,” no matter what the economy is doing…

The Boeing Co. (BA). is pushing back the schedule of its troubled 787 Dreamliner jet program by about six months as it works to unwind delays caused by the recently concluded union-machinists strike, and by thousands of improperly installed fasteners on the first couple of jetliners on the production line. This puts the high-profile airliner program about two years behind schedule.

The tough thing about buying stocks is, you never know when they’ll appreciate in price (and you’ll make a profit). The other tough thing is, no matter how much homework you’ve done, there’s always a risk that something will go terribly wrong (fraud, accident, etc.) and your position will be wiped out. There are no guarantees when it comes to buying equity.

Crude oil prices spiked $10 today to reach a new record above $139, as disappointing US unemployment data, a weak US dollar, and a comment by the Israeli transport minister that an attack by Israeli forces on Iranian nuclear sites was “unavoidable” sent prices spiraling.

A Morgan Stanley forecast of crude oil prices at $150 within the month added further support to oil’s climb.

“I can’t think of a sector more vulnerable to soaring oil prices than the airlines,” writes Andrew Gordon in Investor’s Daily Edge.

“It’s just crazy to think of oil over $100,” one snowy-haired gentleman said. “It will be interesting to see what happens when it goes to $150″ says Justice Litle.

Let’s begin at the beginning, shall we?…as the egg goes, so goes the chicken. A game of consumer product mousetrap…desperate times for the airline industry and the manufacturing sector. Is this a rerun of the 1970’s? Don’t pull out the shag carpeting and the disco ball just yet…and more!

The airline industry is a mess. Things are so out of whack that one airliner, American Airlines, announced last week that it was going to charge for the baggage that passengers check.

British-based business class airline Silverjet announced today that it was grounding its planes as high oil prices force airlines to consolidate to survive. This from Bloomberg:

Silverjet, which never made a profit in 16 months, was the last of three business-class only operators flying between London and the U.S. following the bankruptcy of Eos Airlines and MAXjet Airways Inc. More than a dozen carriers have collapsed in the past six months after the price of oil jumped 41 percent.