PPRuNe Forums - View Single Post - Virgin Syd-Canberra-Syd Services Under Threat
Old 17th Jul 2004, 02:12
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404 Titan
 
Join Date: May 2002
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Bugsmasha

Fuel prices would be a very large increase in DJ’s bottom-line and ASK’s because of their lack of any fuel hedge. Most carries in the region SQ, CX, QF, hedged fuel before it got really high but not DJ. This could be for a number of reasons. They didn’t think that they would get this high and/or remain this high for this long and/or the most likely reason is that their cash reserves are not yet sufficient enough (they have only been around 4 years) to hedge fuel on a meaningful scale.
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