Fuel Hedging at EK
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Fuel Hedging at EK
OK so with all this talk about fuel savings and everything the pilots are required to do. Where is the accountability of the bean counters? funny how its never mentioned , how come some airlines analysts are able to hedge at $100 a barrel and ride out the storm. When we hit $130 + a barrel its panic stations. where are "our" rocket scientists?
Perhaps someone could enlighten us as to how this works. With teams of experts analysing all available data and telling us how much extra fuel we burn per sector to the kg bla bla. Surely some of this " expertise" could be used towards a sensible fuel hedging decision .
Perhaps someone could enlighten us as to how this works. With teams of experts analysing all available data and telling us how much extra fuel we burn per sector to the kg bla bla. Surely some of this " expertise" could be used towards a sensible fuel hedging decision .
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Maybe they have been quietly hedging all along!
It's an opportune time to implement all the fuel savings procedures regardless of the hedging, and enforce them with papertrail, emails and tea and biscuits to maximise the profits and squeeze a little extra out to get a leg up over competition.
Not saying that's what's happening, but if I was the CEO I wouldn't mention anything about hedging to the crews or to the media and pretend to be suffering from petrol-itis like everyone else.
It's an opportune time to implement all the fuel savings procedures regardless of the hedging, and enforce them with papertrail, emails and tea and biscuits to maximise the profits and squeeze a little extra out to get a leg up over competition.
Not saying that's what's happening, but if I was the CEO I wouldn't mention anything about hedging to the crews or to the media and pretend to be suffering from petrol-itis like everyone else.
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Not only that but hedging, for all intents and purposes, is betting. Educated betting but betting non the less. There is a cost to buying future contracts and, if the price goes up you make some money. If it is stagnant or goes down then you lose money.
The biggest advantage for a company in hedging is that stabilizes/makes your costs know for a certain period of time which can be a benefit. Most comany's hedge only a portion of their fuel as well.
In any case, it is like predicting the price of a stock and becomes a mugs game unless you are VERY good.
The biggest advantage for a company in hedging is that stabilizes/makes your costs know for a certain period of time which can be a benefit. Most comany's hedge only a portion of their fuel as well.
In any case, it is like predicting the price of a stock and becomes a mugs game unless you are VERY good.
how come some airlines analysts are able to hedge at $100 a barrel
Only way to make money gambling is to own a casino
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Now is a good time to hedge fuel about $110 or some a barrel..... before winter comes about... and before OPEC cuts production in a few months which again will raise the cost per barrel..
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The Black Gold won't ever go up again unless a major breakout of hostilities starts involving oil producers.
The American economy is improving slowly, there will be a new (democrat) President and so things will quiet down.
The Black Gold price is "controlled" by the speculators and only few times had to do with a production cut, or at least it never had the impact it had few months ago. Remember the Russian Gazprom saying few months ago that the price would reach 200$ or more. This guy is one of those "nuts".
Thank God he is not on the floor of a major stock market or perhaps, and I hope, his silly remarks would fall in deaf ears.
The American economy is improving slowly, there will be a new (democrat) President and so things will quiet down.
The Black Gold price is "controlled" by the speculators and only few times had to do with a production cut, or at least it never had the impact it had few months ago. Remember the Russian Gazprom saying few months ago that the price would reach 200$ or more. This guy is one of those "nuts".
Thank God he is not on the floor of a major stock market or perhaps, and I hope, his silly remarks would fall in deaf ears.
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TOGA!, You are right on the hedging fuel and where. I really hope the guys who bought large quantities at perhaps 150$ a Barrel now will have to sell it at current price or lower because I don't think the price is going to go up in the near future.
I never had any sympathy for the greedy.
I never had any sympathy for the greedy.
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Fractional,
''The American economy is improving slowly, there will be a new (democrat) President and so things will quiet down.''
If only that were the truth. First off the American economy is a mess and there are far more signs that things are worsening, rather than improving. Watching Alan Greenspan on CNN the other day, was downright scary. He expressed his viewpoint that this was the 'beginning' (not the end or the middle) of the worst economic crisis in the world, over the past 100 years. Coupled with the fact that the vaunted 'resilience' of the American economy might no longer exist, this might result in some ugly scenarios.
Secondly, the mere fact that McCain and Obama are running so close in the polls should be a clear indication that truth or education is not the forte of some people.
90% of the world realizes Obama is the only chance to repair the last 8 disastrous years, yet 50% of Americans disagree. Either 3.5 billion people are wrong, or 160 million people are wrong. Considering recent history, I'm betting the 160M are wrong !
Regardless of what is so clear to most people, it is not a foregone conclusion that the American people will hold the same opinion. It's their election so all we can do is hope for the best. I truly hope you are correct that Obama will win, not just the sake of the American people, but the rest of us too.
In the past 8 years it was getting difficult to tell the difference between the good guys and bad guys on the world scene.
''The American economy is improving slowly, there will be a new (democrat) President and so things will quiet down.''
If only that were the truth. First off the American economy is a mess and there are far more signs that things are worsening, rather than improving. Watching Alan Greenspan on CNN the other day, was downright scary. He expressed his viewpoint that this was the 'beginning' (not the end or the middle) of the worst economic crisis in the world, over the past 100 years. Coupled with the fact that the vaunted 'resilience' of the American economy might no longer exist, this might result in some ugly scenarios.
Secondly, the mere fact that McCain and Obama are running so close in the polls should be a clear indication that truth or education is not the forte of some people.
90% of the world realizes Obama is the only chance to repair the last 8 disastrous years, yet 50% of Americans disagree. Either 3.5 billion people are wrong, or 160 million people are wrong. Considering recent history, I'm betting the 160M are wrong !
Regardless of what is so clear to most people, it is not a foregone conclusion that the American people will hold the same opinion. It's their election so all we can do is hope for the best. I truly hope you are correct that Obama will win, not just the sake of the American people, but the rest of us too.
In the past 8 years it was getting difficult to tell the difference between the good guys and bad guys on the world scene.
"I'm hedging that the new president is REPUBLICAN"
Holy Mother of God, I hope not......A VP with the Nuclear Codes who doesn't believe that Dinosaurs were around....Scary stuff
Holy Mother of God, I hope not......A VP with the Nuclear Codes who doesn't believe that Dinosaurs were around....Scary stuff
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mensaboy,
Certainly the Americans will know what to do in November. I predict a democrat victory and I am not "singing in the rain" yet.
The same way you mention about Alan Greenspan's pessimistic vision, there are other opinions too. Here is one from The National Post (USA):
Looking at a hypothetical title "bad news is good news for the long-term investor", my belief is the worst is gone in the USA. Europe is starting to feel the real pinch despite much heroic resistance across the Continent in the last 6 months: The recent British economy data indicated so. Today's news will make it slightly worse.
It is very easy and quick to destroy an economy, but extremely slow and difficult to rebuild it. However, the American economy will recover more easily than the European one.
Politicians are all the same. It doesn't matter what colour, party or creed. The important thing is always to have good people around us which is a tough matter because you never know who's friend or foe and try to enjoy every momment if you can.
Certainly the Americans will know what to do in November. I predict a democrat victory and I am not "singing in the rain" yet.
The same way you mention about Alan Greenspan's pessimistic vision, there are other opinions too. Here is one from The National Post (USA):
At some point, U.S. financial stocks and the broader U.S. financial market is going to look like a tremendous buying opportunity. But things will get worse before they get better and Alan Greenspan’s televised weekend comments about this being the worst financial crisis in his lifetime certainly doesn’t help. Greenspan should know since he should shoulder much of the blame for sewing the seeds of this crisis.
It is very easy and quick to destroy an economy, but extremely slow and difficult to rebuild it. However, the American economy will recover more easily than the European one.
In the past 8 years it was getting difficult to tell the difference between the good guys and bad guys on the world scene.
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It appears to me Fractional, that you are a wise person. I happen to disagree with you on certain points though.
What motive would Greenspan have to lie now? He clearly is a very smart man and in spite of his initial support for GWB's policies, he realized very quickly that the REPUBS were intent on supporting the 'UPPER CLASS, haha, at whatever cost to the MIDDLE CLASS"
Just because the last few generations have seen certain patterns in economic cycles, does not necessarily mean that will continue.
For example the war in Vietnam appeared to be a thrust against the advance of communism and a 'lack of freedom', it was ill-advised. Yet even then, I believe it was not based on lies. It was carried out foolishly though.
Back then, things were different. When the Yanks 'FINALLY' entered the great war(WWll), and GOOD prevailed, it was the beginning of good times. Presently this is not the case. Neither does the USA have the economic power or even political will to do the correct thing. Sadly, due to human nature, when a culture or nation reaches the pinnacle of existence, it almost always results in their eventual downfall.
Honestly, just consider the educational level of the average American. It is appalling. I do not mean to slag my Yank pals, but there is no denying that fact. When you throw into the equation the disgusting government of the last 8 years, there is no reason to believe that somehow, they will see the light.
The country, albeit it wonderful and initially based on sound and decent principles, is definitely in decline. Really, can any sane person even try to explain why McCain is even in the running? It truly amazes me.
I am embarassed by western society of late. There are only a few countries left on this planet that seem to hold proper values in high regard.
I will go on record now, stating that thing are going to get ugly in the near future. Fortunately for us at EK, things are still good. This is probably the best airline for pilots, at least in the near term. Just wait till McCain (if he ever gets into office), starts HIS next war.
To be honest, I don't dislike McCain as a human being. I always thought GWB was evil and stupid and I have been proven correct in those regards. I just believe McCain is mis-guided.
I mean really....... A SOCCER MOM has a 1 in 3 chance of taking the Presidency and staring down Putin ! That is based upon insurance company actuarial statistics ! This clearly points out McCains lack of judgement, something which I believe to be all too evident.
No other country, aside from perhaps Pakistan, would even tolerate a political party putting forth such candidates. This says alot about the GOOD OLE USA.
I don't even give a rats ass anymore. I will find my place of security, live on the beach and attempt to ignore things when they get ugly.
Take a look at the average Yank response when someone points out the obvious. People like OJGuilty. They are stunned c.. un ts. And these people are the future of western society?
It is time to reflect on the evil and illegal war that GWB started in Iraq. That prick, should be in jail ! Yet to this day...... 40% of Americans still support him. That is shocking and depressing.
Anyhow, I just don't care anymore. lol. I used to care, but now I figure what the hell. I'm looking after myself and my own, and that is about all. If the Yanks are about to suffer immeasurably in the next few decades, then so be it. If they prosper in the next few decades (that's a long shot) then so be it.
My apologies for the rant, but I truly believe things are about to get ugly in the world.
What motive would Greenspan have to lie now? He clearly is a very smart man and in spite of his initial support for GWB's policies, he realized very quickly that the REPUBS were intent on supporting the 'UPPER CLASS, haha, at whatever cost to the MIDDLE CLASS"
Just because the last few generations have seen certain patterns in economic cycles, does not necessarily mean that will continue.
For example the war in Vietnam appeared to be a thrust against the advance of communism and a 'lack of freedom', it was ill-advised. Yet even then, I believe it was not based on lies. It was carried out foolishly though.
Back then, things were different. When the Yanks 'FINALLY' entered the great war(WWll), and GOOD prevailed, it was the beginning of good times. Presently this is not the case. Neither does the USA have the economic power or even political will to do the correct thing. Sadly, due to human nature, when a culture or nation reaches the pinnacle of existence, it almost always results in their eventual downfall.
Honestly, just consider the educational level of the average American. It is appalling. I do not mean to slag my Yank pals, but there is no denying that fact. When you throw into the equation the disgusting government of the last 8 years, there is no reason to believe that somehow, they will see the light.
The country, albeit it wonderful and initially based on sound and decent principles, is definitely in decline. Really, can any sane person even try to explain why McCain is even in the running? It truly amazes me.
I am embarassed by western society of late. There are only a few countries left on this planet that seem to hold proper values in high regard.
I will go on record now, stating that thing are going to get ugly in the near future. Fortunately for us at EK, things are still good. This is probably the best airline for pilots, at least in the near term. Just wait till McCain (if he ever gets into office), starts HIS next war.
To be honest, I don't dislike McCain as a human being. I always thought GWB was evil and stupid and I have been proven correct in those regards. I just believe McCain is mis-guided.
I mean really....... A SOCCER MOM has a 1 in 3 chance of taking the Presidency and staring down Putin ! That is based upon insurance company actuarial statistics ! This clearly points out McCains lack of judgement, something which I believe to be all too evident.
No other country, aside from perhaps Pakistan, would even tolerate a political party putting forth such candidates. This says alot about the GOOD OLE USA.
I don't even give a rats ass anymore. I will find my place of security, live on the beach and attempt to ignore things when they get ugly.
Take a look at the average Yank response when someone points out the obvious. People like OJGuilty. They are stunned c.. un ts. And these people are the future of western society?
It is time to reflect on the evil and illegal war that GWB started in Iraq. That prick, should be in jail ! Yet to this day...... 40% of Americans still support him. That is shocking and depressing.
Anyhow, I just don't care anymore. lol. I used to care, but now I figure what the hell. I'm looking after myself and my own, and that is about all. If the Yanks are about to suffer immeasurably in the next few decades, then so be it. If they prosper in the next few decades (that's a long shot) then so be it.
My apologies for the rant, but I truly believe things are about to get ugly in the world.
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The current, much vaunted, fuel price crisis has brouhgt about the recent fuel-saving measures (gradually 'encouraged' with increasing conviction)...they are here to stay - mark my words.
Just like a number of the additional rules that were introduced after 9/11, in the interests of 'security'..
Just like a number of the additional rules that were introduced after 9/11, in the interests of 'security'..
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In late winter/early spring, The company news publication "SAFAR" had an article in which they recognized and applauded the great effort of Mr. XYZ for hedging EKs fuel for the next X amount of years.
I can't recall the name or nationality of this individual that was mentioned in the article, but I clearly recall the article explaining what hedging was and its affects on EKs bottom line.
So Yes they Hedge... and if I was a gambling man... and with all the Fuel optimization and saving ( nothing wrong with it, a business should run as lean as lean can be), but I bet EK is laughing all the way to the bank.... and chance are that next spring we wont see much of a profit share cause of the high fuel process. Caugh Caugh BS. (hope I am wrong)
On another note,
What media sources are you getting your info about in regards to the US economy is improving... As much as I wish you are correct, that just ain't the case.
With the events of the last few days in the financial sector, there are still a few more banks and mortgage companies that will drop from this domino effect.
Not sure when things will start improving, but a new administration in 1600 Pennsylvania Avenue will be a good start.
I can't recall the name or nationality of this individual that was mentioned in the article, but I clearly recall the article explaining what hedging was and its affects on EKs bottom line.
So Yes they Hedge... and if I was a gambling man... and with all the Fuel optimization and saving ( nothing wrong with it, a business should run as lean as lean can be), but I bet EK is laughing all the way to the bank.... and chance are that next spring we wont see much of a profit share cause of the high fuel process. Caugh Caugh BS. (hope I am wrong)
On another note,
What media sources are you getting your info about in regards to the US economy is improving... As much as I wish you are correct, that just ain't the case.
With the events of the last few days in the financial sector, there are still a few more banks and mortgage companies that will drop from this domino effect.
Not sure when things will start improving, but a new administration in 1600 Pennsylvania Avenue will be a good start.
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Fuel Hedging at EK
OK so with all this talk about fuel savings and everything the pilots are required to do. Where is the accountability of the bean counters? funny how its never mentioned , how come some airlines analysts are able to hedge at $100 a barrel and ride out the storm. When we hit $130 + a barrel its panic stations. where are "our" rocket scientists?
Perhaps someone could enlighten us as to how this works. With teams of experts analysing all available data and telling us how much extra fuel we burn per sector to the kg bla bla. Surely some of this " expertise" could be used towards a sensible fuel hedging decision .
OK so with all this talk about fuel savings and everything the pilots are required to do. Where is the accountability of the bean counters? funny how its never mentioned , how come some airlines analysts are able to hedge at $100 a barrel and ride out the storm. When we hit $130 + a barrel its panic stations. where are "our" rocket scientists?
Perhaps someone could enlighten us as to how this works. With teams of experts analysing all available data and telling us how much extra fuel we burn per sector to the kg bla bla. Surely some of this " expertise" could be used towards a sensible fuel hedging decision .
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I think too many are looking at past info and experience in this oil debate. $75 will seem VERY cheap in the coming months and years. $150 will seem just cheap.
Education in the oil sector is in order for most of society (if that's what they call Dubai) and people on this globe. Oil from most of the worlds giant oil fields is depleting (and "The Kingdom" doctors or lies about their data) and there are no new reserves popping up. No "silver bullits." This problems is real and will be the biggest news going forward. The biggest loser in all of this will be the US, as they'll have to dig and even bigger hole to try and prop their society up, which is completely designed and built around cheap oil. Amazing how times can shift. History will teach us a lesson once again, all great empires come to an end.
As most of you are probably doubters, a great place to start is a book by Matthew Simmons, "Twilight in the Desert," where he uses endless DATA to prove his point, not some blind faith.
As for hedging, I'd say set your hedges now Emirates, if you want to be one of the long term players in this game.
Well, time to put my smile back on and get outside.
Education in the oil sector is in order for most of society (if that's what they call Dubai) and people on this globe. Oil from most of the worlds giant oil fields is depleting (and "The Kingdom" doctors or lies about their data) and there are no new reserves popping up. No "silver bullits." This problems is real and will be the biggest news going forward. The biggest loser in all of this will be the US, as they'll have to dig and even bigger hole to try and prop their society up, which is completely designed and built around cheap oil. Amazing how times can shift. History will teach us a lesson once again, all great empires come to an end.
As most of you are probably doubters, a great place to start is a book by Matthew Simmons, "Twilight in the Desert," where he uses endless DATA to prove his point, not some blind faith.
As for hedging, I'd say set your hedges now Emirates, if you want to be one of the long term players in this game.
Well, time to put my smile back on and get outside.
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If Emirates want to join the "big boys" in the world of flying planes then they have to accept the cost the running the dam things, and that includes buying the petrol.
What we do as pilots in the long run makes no real difference, so do as I do and most other pilots and ignore the company crap and carry on as normal.
What we do as pilots in the long run makes no real difference, so do as I do and most other pilots and ignore the company crap and carry on as normal.