Ual Reports February Results

[mweiss]

The ATSB could easily argue that ability to control fuel expenses is not impossible given that carriers like WN are buying most of their fuel at hedged prices that are 2/3 of what is available on the spot market.

They could, but it wouldn't be a credible argument against UA, since any hedge contracts they had when they filed were nullified as part of bankruptcy.

 

[WorldTraveler]

That's precisely the point. The fact that United lost the ability control a key cost is not the government's problem (really the taxpayer) to rectify. Further, it can easily be seen that network carriers have ceded fuel risk management to the low cost carriers even though the big boys really initiated fuel risk programs. Just another case where the network carriers have lost control of some of the most crucial components of a viable business strategy.

 

[Eagle]

Does anyone know if the Star Alliance has a group that could be doing the headging on behalf of the member carriers?

 

[avek00]

Does anyone know if the Star Alliance has a group that could be doing the headging on behalf of the member carriers?

Given that roughly half of Star Alliance is currently in some state of serious financial distress, I strongly doubt that a viable alliance-wide fuel hedging system could be implemented.