Originally Posted by
georgetg
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
You were so close.. until your last paragraph. You nailed the concept about hedges being a continuous process, but then you act as if the pilot contract is not. It ABSOLUTELY is a continuous process, and the company absolutely treats it the same.. That is what is so frustrating about some of these guys acting like their dog was shot in our latest deal. It is just a part of the process. Getting spun up about what has or has not transpired is childish because it will change again very soon. I can guarantee you that management didn't get all they wanted, but I highly doubt it if Msrs Dickson and Anderson sit around and whine about what happened like we do.
Edit: Or is that what you were saying?
