Easyjet - 3
E-mail is now out. It's just a briefing on how tough things are, high oil prices etc.
Nothing we have not heard before, Pilot's payrise will be honoured as they say a promise is a promise
No random rostering, nothing on any further base closures.
Nothing we have not heard before, Pilot's payrise will be honoured as they say a promise is a promise
No random rostering, nothing on any further base closures.
Is that it? and there was me all ready to light the brazier (or brassiere....)
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easyjet new routes?
they are operating mxp-fco 4 times a day soon do they realise the high speed train opens in the next few years central rome to milan central 3.00hrs no one is going to go out of the cities to aerports two /three hours in advance then mess around for a couple of hours getting back to the city centre when direct will be 3 hrs
I'm sure the meeting in the crew room goes into more detail, I will not put up exact details on here from Andy Harrisons e-mail. But it's nothing have not heard before.
Still go on about the ever rising oil prices despite it dropping everyday for the last month or so, last check it was down to 78$ a barrel.
Best part is still payrise will be honoured
Still go on about the ever rising oil prices despite it dropping everyday for the last month or so, last check it was down to 78$ a barrel.
Best part is still payrise will be honoured
fuel
I heard 50% at 122.550.$ per tonne
Dont know how long for though??
Its mentioned on L.S.E. easyjet page to the city in a forecast.Dunno why we dont hedge the other 50% at $80 then we know what we have to do,winters coming after all.
Dont know how long for though??
Its mentioned on L.S.E. easyjet page to the city in a forecast.Dunno why we dont hedge the other 50% at $80 then we know what we have to do,winters coming after all.
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Airlines seem to hedge only 90% of expcted need. I guess they can then chamge their flying programme and vary slightly how much they uplift to manged cost/profitablity. Getting hedging wrong can be very costly but FR made some good profits on getting it near perfect in the past. What we see are spot prices and it is likely not to be possible to hedge at those rates. At the end of the trading period the market may be short (price spikes to $147) or have more than is needed (price dips to $77). Look at NYMEX.com for long term rates.
Hedging fuel
The purpose of hedging is to give a company certainty over its costs. Thus, you know what your costs are going to be, and can plan which aircraft to fly or not, with a better idea of what routes will or won't be profitable.
Only the oil majors (e.g. Shell, BP, Exxon) by virtue of both digging it out the ground and selling it both retail and wholesale have good information about oil. An airline like Easyjet is not meant to be trying to actively make money out of trading oil - and shareholders get very upset if they think you are doing so.
The decision as to whether to hedge should be taken by someone at least as senior as the CFO - ideally including reference to the CEO. If not (and it's a sign of very poor corporate governance), the bloke who is making a judgment call ends up making big bets on the price of oil. If he gets it wrong and he expects to get fired for a wrong guess, it's very tempting to play double-or-quits. Then he doubles up again. Pretty soon, you end up with Nick Leeson betting al the firm's money and the company going bust.
If an investor wants to buy shares in a short-haul European airline, Easyjet is a good candidate. If they want someone to buy and sell oil for them, there are plenty of hedge funds who'll happily do it for you !
Only the oil majors (e.g. Shell, BP, Exxon) by virtue of both digging it out the ground and selling it both retail and wholesale have good information about oil. An airline like Easyjet is not meant to be trying to actively make money out of trading oil - and shareholders get very upset if they think you are doing so.
The decision as to whether to hedge should be taken by someone at least as senior as the CFO - ideally including reference to the CEO. If not (and it's a sign of very poor corporate governance), the bloke who is making a judgment call ends up making big bets on the price of oil. If he gets it wrong and he expects to get fired for a wrong guess, it's very tempting to play double-or-quits. Then he doubles up again. Pretty soon, you end up with Nick Leeson betting al the firm's money and the company going bust.
If an investor wants to buy shares in a short-haul European airline, Easyjet is a good candidate. If they want someone to buy and sell oil for them, there are plenty of hedge funds who'll happily do it for you !
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I understand that hedging doesn't matter hugely if the price falls. If you are hedged at (say) $120, and the market is (say) $80, you just sacrifice the 10% of the contract and buy at $92 (Market + 10% of hedge price). Yeah, not as good as if you hadn't hedged - but on the other hand, if the market were at $160, you could buy for $120.
Unhedged, if the market varies between $80 and $160, you pay between $80 and $160. Hedged, you pay between $92 and $120. Which one looks better from a financial planning point of view? - especially if you know you can expect to break even over the year at $120, but not at $160 ...
Unhedged, if the market varies between $80 and $160, you pay between $80 and $160. Hedged, you pay between $92 and $120. Which one looks better from a financial planning point of view? - especially if you know you can expect to break even over the year at $120, but not at $160 ...
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There are different hedging strategies.
Easy has already purchased 50% of next years jet kerosene at $1225 per tonne.
Present price around $750 per tonne.
Unless I am mistaken, this is a huge clanger!
Binder
Easy has already purchased 50% of next years jet kerosene at $1225 per tonne.
Present price around $750 per tonne.
Unless I am mistaken, this is a huge clanger!
Binder
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St Nicholas
"NCL Base Captain resigned position couple of weeks ago.No replacement yet. Cabin Crew manager BRS Based. Economic downturn traditionally effects the NE more than most areas. W patterns mentioned. Cabin crew random roster being implimented. Not looking good for NCL."
What utter bolleaux.
The economic downturn AFFECTS us no more or less than anyone else in this part of the world and it's EFFECTS are generally being felt harder in financial capitals and not "up north".
"NCL Base Captain resigned position couple of weeks ago.No replacement yet. Cabin Crew manager BRS Based. Economic downturn traditionally effects the NE more than most areas. W patterns mentioned. Cabin crew random roster being implimented. Not looking good for NCL."
What utter bolleaux.
The economic downturn AFFECTS us no more or less than anyone else in this part of the world and it's EFFECTS are generally being felt harder in financial capitals and not "up north".
Red On, Green On
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Economic downturn traditionally effects the NE more than most areas.
being felt harder in financial capitals
BBC lunchtime news showed unemployment up more in NE England than elsewhere, including London.