Fractional,
You are correct. Takreer (The Abu Dhabi Refining Company) does indeed refine Jet A-1. I did not know that but it does make sense. Now I will find out if their stock is listed yet. With the growth of aviation it should be a good growth stock.
You are correct also in that the word "hedge" is not in the annual report. What it says is "fuel risk management program". I am not sure that it could mean anything other than hedging. It is not fuel savings, or usage. The only risk we have from fuel is it's price.
This is from page 35 of the annual report:
Fuel price risk
"The airline industry is exposed to fluctuations in the price of jet fuel. Emirates closely monitors the actual cost of fuel against forecasted cost. Emirates utilises commodity futures and options to achieve a level of control over jet fuel costs so that profitability is not adversely affected. As a general principle, not more than the forecasted fuel consumption is hedged with percentage of cover being significantly higher in the near term than in latter period."
We have been hedging fuel for the last 3 years that I am aware of. I am sure that it is more, but yes it is a yearly strategy.
And yes there is alot of "engineering" at emirates. But this is an audited financial statement, audited by PricewaterhouseCoopers. We can hide some stuff but nothing major.
The APU thing is another story. Power and air on the air bridge but DNATA will not hook it up. Go Figure!
330 Man