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Old 3rd April 2015 | 06:11
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Arfur Dent
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Joined: Nov 2007
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From: Brexitland
If you have a highly paid Department that researches and specifies exactly how much fuel to 'hedge' in a year and they come up with a $117 MILLION US DOLLAR loss, you'd think the CEO would be a bit offside. Not a bit of it. 'Hedging stabilises the operational costs so we know what we're dealing with.' Really?? The Chinese don't hedge for some reason and are taking full advantage of fuel costing something like half of what CX geniuses have paid/are paying. The Chinese are pretty good businessmen but not as clever as our lot who would lose face if they stopped hedging in this unpredictable world. So we continue gambling with Company money in order to have some idea of what our fuel costs will be.
There must be a loss figure directly attributable to hedging that indicates "STOP HEDGING" at least until the market settles down.
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