How Will This Effect Us Airways?

[USA320Pilot]

See Story

Regards,

USA320Pilot

 

[pitguy]

"U" should have hedged the fuel. Dave is in charge of "U".

--$250,000,000.00 can hedge allot of fuel.

 

[diogenes]

Weren't fuel prices reasonable prior to U BK?

DUHHH!!!

 

[USA320Pilot]

Hedging requires up front capital and is dangerous. Often times you can pay too much for the commodity and lose even more money. For those people who believe it's so easy, then I suggest you take our a large personal loan, obtain a broker, and begin trading on the NYMEX.

Regards,

USA320Pilot

 

[BoeingBoy]

That's ok - they'll just tack the extra fuel cost on to the concession amount.

Jim

 

[pitguy]

Can Dave ever do any wrong in your eyes USA320Pilot?

 

[USA320Pilot]

Pitguy:

Pitguy said: "Can Dave ever do any wrong in your eyes USA320Pilot?"

USA320Pilot responds: Yes he can and I have told him so when I believe he's been wrong, which has happened on more than one occasion.

Respectfully,

USA320Pilot

 

[USA320Pilot]

By the way, hedging has fixed up front costs when the airline pays the option premiums.

For example, Reuters reported today part of the reason S&P lowered Delta Air Lines' credit rating was the airline said that it expects the loss for its March quarter to be around $400 million, higher than the previously expected $300 million to $350 million range, because of higher fuel prices and fuel hedging costs.

Thus, for an airline that will likely be required to sell non-core assets to maintain short-term liquidity requirements, spending money to speculate in the commodity markets is a huge risk.

See Story

Regards,

USA320Pilot

 

[ClueByFour]

Hedging requires up front capital and is dangerous. Often times you can pay too much for the commodity and lose even more money. For those people who believe it's so easy, then I suggest you take our a large personal loan, obtain a broker, and begin trading on the NYMEX.

That's a strawman.

Presumably, one of the skills you want in a Haaavard educated MBA who has "prior industry experience" is enough knowledge of futures to know when to hedge. It's a skill that is prerequisite to running an airline.

Joe mechanic, pilot, flight attendant, and pax presumably does not have hedging futures in their job description. Dave (or someone on the executive team who he hires and/or supervises) does.

I'm not going to go out and buy myself an A-320 and try to fly it, either--it's not a skill which I need for my job.

 

[GeezLouis]

Excellent Point Clue!!!

 

[linemech]

Hedging requires up front capital and is dangerous. Often times you can pay too much for the commodity and lose even more money. For those people who believe it's so easy, then I suggest you take our a large personal loan, obtain a broker, and begin trading on the NYMEX.

Regards,

USA320Pilot

If it was easy, the job would not pay 3.8 million a year, but since it does..............
Yes it is Daves fault !


Linemech

 

[insp89]

Hedging requires up front capital and is dangerous. Often times you can pay too much for the commodity and lose even more money. For those people who believe it's so easy, then I suggest you take our a large personal loan, obtain a broker, and begin trading on the NYMEX.

Regards,

USA320Pilot

Here's a no-brainer, Just wait around and see what Southwest does, AND DO THE SAME ! Monkey See, Monkey Do.........One would think Bronner would be smart enough to use some of his Billions upfront to hedge fuel in order to come out AHEAD in the long run. But wait,,, If he tried something like that,, U would have made a PROFIT last quarter !!!!!!! BAD news for a company thats attempting to "BEND OVER " the work force AGAIN....pathetic :down:

 

[ITRADE]

To all the nay sayers out there, keep the following point in mind.

US is about 20% hedged.

Northwest, Continental, and United are ZERO percent hedged.

So, if Dave is a thief, what does that make Anderson or Bethune?

 

[insp89]

To all the nay sayers out there, keep the following point in mind.

US is about 20% hedged.

Northwest, Continental, and United are ZERO percent hedged.

So, if Dave is a thief, what does that make Anderson or Bethune?

Dave doesn't like comparing U to the other "legacy" carriers, He compares us to the "LCC" carriers.. What percentage is Southwest Hedged ?

 

[Doc]

I would think that all Dave had to do was watch our wonderful Republican president.
I bet he is just wall papering his house with money he is making on the oil prices.
Does anybody think we went to war just because of WMD I think not. It’s always about the money and those who have a lot get to play the game. Dave should of hedged more fuel... money was tight but he could of done a little more. I think most of just want that little extra effort from our leaders instead of all these blundering mistakes.