I Wonder If.....

[justaumechanic]

I wonder if your CEO and his staff are burning the midnight oil wondering if they are making the right choice..

With oil headed to $60 a barrel the cost of this merger is going to be staggering.

The meaning here is it will be costly to AmericaWest and its future.

Your CEO was very clear.. The new company could make money at $50 a barrel.. How about $60?

 

[luvn737s]

Hedges anyone?

 

[corl737]

Hedges anyone?

[post="278105"][/post]​

With the cost of a long merger process facing them I doubt HP has enough cash to even think about buying significant hedge positions.

 

[insp89]

With the cost of a long merger process facing them I doubt HP has enough cash to even think about buying significant hedge positions.

[post="278636"][/post]​

As time marches on, it appears Fuel Hedging will signifcantly become less of an advantage for Southwest..

From Southwest's Annual report ;

85% of Southwest's fuel is hedged @ $26.00/ barrel for 2005..

65% of Southwest's fuel will be hedged @ $32.00/ barrel for 2006..

Around 45% of Southwest's fuel is hedged @ $31.00/barrel for 2007..

Only 30% @ $33.00/ barrel for 2008..

25% @ $35.00/barrel in 2009..


As you can see, Southwest will be hedging 20% Less fuel in 2006 than they did this year..and it will cost them $6.00/ barrel more than in 2005..

And the percentage of fuel will continue to erode to around 25% in 2009..

Obviously, a lot will depend on what the cost of oil will be in the future months and years ahead..[I will leave it to the "arm chair prophets" to supply us with future oil price predictions..

 

[corl737]

As time marches on, it appears Fuel Hedging will signifcantly become less of an advantage for Southwest.

Yes, this is not only true but foremost in the minds of both SWA management and employees. The key is to get every posible cost under absolute control while the temporary "hedged times" are still effective. Improve efficiencies while the times don't require furloughs or firings.

(Witness the examination of changing airports in Seattle! ... the strong urge to get the archaic Federal Limitations on Dallas Love Field (the inappropriately named "Wright Amendment") rescinded! ... the emphasis by the employee groups to work harder and smarter to prevent bulging above the bottom line!)

-- C

 

[firstamendment]

[deleted]

 

[700UW]

You need to take some valium and lighten up.

 

[Bear96]

[deleted]

[post="280398"][/post]​

My. So anyone who voices their (well-founded) concerns about the merger is an "anti-U [deleted]"?

 

[StraaightTaalk]

FirstAmendment has been off the meds for some time, and s/he seriously needs them.

You should see some of the PMs s/he has sent me!