Fragrant Harbour A forum for the large number of pilots (expats and locals) based with the various airlines in Hong Kong. Air Traffic Controllers are also warmly welcomed into the forum.

Fuel Contracts

Old 23rd Apr 2020, 13:45
  #41 (permalink)  
 
Join Date: Dec 1998
Posts: 813
I am cutting and pasting from something AllWobbly said on another thread:

"Here’s a direct quote from the employment ordinance website re varying contracts

Under the Employment Ordinance, the five valid reasons for dismissal or variation of the terms of the employment contract are:
  1. the conduct of the employee;
  2. the capability or qualifications of the employee for performing his work;
  3. redundancy or other genuine operational requirements of the business;
  4. statutory requirements; or
  5. other substantial reasons

It depends whether one thinks grounding almost all of the fleet is a ”substantial” enough reason to vary a contract or that ” requirements of the business “ are such that the company could justify it.

I guess the only way to find out what it really means would be to run it by an employment lawyer or test it"

I have it on good authority that management are resting what is to come on points 3 and 5. It is nice to believe that they will "honour" our contracts on every point, but this time round they are planning to move aggressively to restructure the business once and for all. I know that isn't a palatable thing to hear, but realistically what would we now expect. I don't know specifically what they are planning (only that they are), and they may change their minds prior to implementation, but I think it wise for everyone to prepare themselves for difficult days ahead. Sadly, fear of an invisible bug has caused our entire industry to collapse. Black Swan event indeed.
mngmt mole is offline  
Old 23rd Apr 2020, 15:51
  #42 (permalink)  
 
Join Date: May 2002
Location: Fragrant Harbour
Posts: 305
https://www.thestandard.com.hk/secti...d-hedging-woes
GTC58 is offline  
Old 23rd Apr 2020, 16:58
  #43 (permalink)  
 
Join Date: Dec 1998
Posts: 813
I am not certain these number are correct, but if they are, then everyone needs to ponder the stark reality of them. Effectively, those numbers, combined with new (and possibly larger) hedging losses mean the end of everything.



"...The airline's largest cost last year was oil, accounting for 28.4 percent of operational costs. From 2015 to 2017, it lost US$8.47 billion, US$8.46 billion and US$6.38 billion in oil hedges respectively. The company only lost US$101 million in 2019 and gained US$13 million in the second half of 2019 in oil hedges..."



I might also add that no one at a senior level has been held accountable. Not a single individual. The same abjectly incompetent and arrogant people are still in charge. They have "lifeboats"....the rest of us, not so much. Sad.
mngmt mole is offline  
Old 23rd Apr 2020, 17:29
  #44 (permalink)  
 
Join Date: May 2002
Location: Fragrant Harbour
Posts: 305
Originally Posted by mngmt mole View Post
I am not certain these number are correct, but if they are, then everyone needs to ponder the stark reality of them. Effectively, those numbers, combined with new (and possibly larger) hedging losses mean the end of everything.



"...The airline's largest cost last year was oil, accounting for 28.4 percent of operational costs. From 2015 to 2017, it lost US$8.47 billion, US$8.46 billion and US$6.38 billion in oil hedges respectively. The company only lost US$101 million in 2019 and gained US$13 million in the second half of 2019 in oil hedges..."



I might also add that no one at a senior level has been held accountable. Not a single individual. The same abjectly incompetent and arrogant people are still in charge. They have "lifeboats"....the rest of us, not so much. Sad.

I believe you are correct. The fuel hedge numbers for 2015-17 should be in HKD and even then they are off by a couple billions. However the 2020 hedging numbers are pretty close.

Cathay Pacific (0293.HK) hedged around 35% of its 2020 fuel at between $61.37 and $65.41 per barrel of Brent.

https://www.reuters.com/article/us-h...-idUSKBN2171FJ


GTC58 is offline  
Old 23rd Apr 2020, 19:39
  #45 (permalink)  
 
Join Date: Aug 2007
Location: Asia
Posts: 124
It is absolute madness to continue to hedge fuel. They think they are so clever yet they are bankrupting the company with their incompetence. Fire them all and pay the spot price, we would have been much better off if they had never hedged at all, ever.
Dilbert68 is offline  
Old 23rd Apr 2020, 19:46
  #46 (permalink)  
 
Join Date: Aug 2008
Location: Polar Route
Posts: 2,009
Careful guys! You might be accused of wearing a tinfoil hat, the surest sign that you are onto something. I think employees, via their trade unions where appropriate, need to be asking detailed questions about fuel hedging. There is obviously no accountability for these stiffs at CX, and that hurts the airline, which is of clear concern to the employees. Full investigation and accountability should be forthcoming.
cxorcist is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.