Second - In order to hedge fuel you have to have money. Clean clear money.. Not money owned by creditors.. US Airways has NO money.. They can not hedge fuel.
So Neil Cohen can sit in his office all day long and watch fuel go up and down and he is powerless to do anything about it. US Airways must buy their fuel at Pump Prices.. Sorry Charlie but thats the way it is..
Hedging is a contract to buy future fuel at a price determined today, based on a guess of the investment community.
Bankruptcy gives US Airways the ability to abrogate contracts.
Thus, even if US Airways had the cash, they will not be able to hedge until post-BK, because nobody will sign a contract which can at any moment be terminated, much like an aircraft lease, with a stroke of the judge's pen.
BTW, if hedging is such a bad idea, why did Southwest extend its hedge position, as well as other carriers using some amount of hedging.
If two bankrupt people get married, collectively their credit does not improve. That is the situation with the Bankruptcy Star Alliance. The European partners probably cannot help much on this side of the pond. And, lets say (newly emerged from BK) Air Canada can hedge, why would they give that hedge position to anyone else? At the end of the day, each member of the BK Star Alliance has to lookout for itself.
