Originally Posted by
salad dodging
CX can no longer afford to pay it's workforce what they have contracted and agreed to pay them. BUT, they will continue to pay twice the amount for fuel than their competitors. THAT agreement they will keep.
Despite the CEO publicly stating in 2009 after their last fuel hedging debacle that for any future fuel hedging strategy “we’ll also be prepared to spend cash on stop-loss contracts”.
When the CEO made that statement sitting next to him was the COO (now the chairman)
Our current CEO signed off on our current fuel hedging strategy.
It turns out that their “stop-loss” strategy was to get the employees to reimburse the shareholders for any adverse fuel price movements.
Brilliant.