No Land Green
Veteran
- Oct 2, 2010
- 760
- 558
Sure Southwest gambled big and they won big up through the 2008 oil spike. Then they lost big when oil prices dropped well below their hedged position, though not nearly as big as they won over roughly two decades of hedging. When you have lots of cash to play the hedging market and can do so without risking the airline if you end up paying for bad hedges, then it is certainly a good strategy.
When cash is tight and failures mean the liquidation of the corporate entity when hedges go wrong, it is a very different decision. Southwest leased multiple AC that they previously owned outright to cover the cash deficit caused by the oil plummet. US is not in the same cash-rich position and the BOD is smart enough to weigh the odds and make the decision. It is their money they are choosing to risk or not risk after all. Why not focus on what you can control rather than lobbing flaming arrows at an issue you clearly don't have all the facts on? What pilots can control is dropping the section 22 challenges, accept the NIC and move towards a JCBA.USAPA is the epitome of ineptness and failure so why don’t you focus your contempt on that group of despots instead?
......fuel hedging to USAPA.......