Originally Posted by
Bucking Bar
ACL and I differ on one angle of this rumor. If American were a target, the timing of the Delta contract makes no sense. ALPA will want a JPWA in exchange for agreement to a merger protocol.
The new Delta contract is like a fuel hedge...
It doesn't ensure the lowest price but makes the future more predictable, in particular in light of how Delta has been using collars.
To boot, hedges aren't a one time deal but a continuous process. Taking a spot check isn't an effective way of measuring the efficacy of a hedging strategy as is evident in the Q2 results...
Why wouldn't a corporation apply the same strategy to other aspects of the business, say a pilot contract?
Cheers
George