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Old 28th Nov 2007, 10:21
  #14 (permalink)  
befree
 
Join Date: Aug 2004
Location: uk
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FR are not short of planes in the winter, they are short of hedged fuel. They hedged (i.e. bought in advance) 90% of what they needed at the equilalent to $65/barrel crude oil price. That allows them to run 90% of what they planned profitably. The last 10% costs around 50% more.

FR are very actively selling planes at a simular price it paid for them 6 years ago. They make a better return on selling planes than usining them at EMA this winter.

I see very few airlines going under in early 2008 but far more reductions in flying programmes outside the summer peaks. It is the winter 2008/9 when they will be having real problems.

Silverjet will run out of money next Spetember and be sold off cheap.

The crude oil price will hit $130/barrel next August in my view.
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