Allegiant doing good it seems..
05-01-2008, 10:45 PM
#22
Gets Weekends Off
Joined APC: Oct 2005
Position: Jump
Posts: 276
Originally Posted by stinsonjr
It is technically not fuel hedging according to GAAP...but it is heging nonetheless.
05-02-2008, 04:34 AM
#23
Gets Weekends Off
Joined APC: Dec 2007
Position: Coach
Posts: 117
it's a freakin' hedge! they're buying derivatives out on an exchange will appreciate if the fuel pump starts burning the credit card. they're not negotiating discounts with a vendor - they are buying securities in a totally different marketplace.
the only place you don't call this a "hedge" is on a tax return or at dinner with a politician. a hedge in every way except for name.
the only place you don't call this a "hedge" is on a tax return or at dinner with a politician. a hedge in every way except for name.
05-02-2008, 05:12 AM
#24
Gets Weekends Off
Joined APC: Jun 2006
Posts: 919
There is NO reason to buy derivatives if you are not hedging. Many senior management at Allegiant come from SWA. Do not confuse GAAP with the real world of cash and tax accounting. GAAP allows for reserve accounting, allows for gain-on-sale accounting (big in the sub-prime mortgage industry for securitizations) etc. Just because they are not hedging according to GAAP doesn't mean anything - they aren't buying derivatives for fun. Actually, the fact that the gains are broken out like this is, in my mind, more transparent.
05-02-2008, 09:23 AM
#25
Gets Weekends Off
Joined APC: Oct 2005
Position: Jump
Posts: 276
Call it what you want guys, I'm sure that you know more about it than the people who wrote the legal documents for fuel hedging. Either way, it's a very smart thing to do, but we're still paying $3.08/gallon for jet fuel. How much do the major airlines pay?
05-02-2008, 09:26 AM
#26
Gets Weekends Off
Joined APC: Feb 2007
Position: MD80 Captain
Posts: 165
Originally Posted by stinsonjr
There is NO reason to buy derivatives if you are not hedging. Many senior management at Allegiant come from SWA. Do not confuse GAAP with the real world of cash and tax accounting. GAAP allows for reserve accounting, allows for gain-on-sale accounting (big in the sub-prime mortgage industry for securitizations) etc. Just because they are not hedging according to GAAP doesn't mean anything - they aren't buying derivatives for fun. Actually, the fact that the gains are broken out like this is, in my mind, more transparent.
I don't think we have any senior management from SWA. Our old HR head was former SWA, but he's no longer here. I can't think of anyone else that has(d) ties with SWA.
05-02-2008, 01:07 PM
#27
Gets Weekends Off
Joined APC: Jun 2006
Posts: 919
Originally Posted by Chperplt
Thanks for the info... I took the "We have no fuel hedges in place" at face value.
I don't think we have any senior management from SWA. Our old HR head was former SWA, but he's no longer here. I can't think of anyone else that has(d) ties with SWA.
I don't think we have any senior management from SWA. Our old HR head was former SWA, but he's no longer here. I can't think of anyone else that has(d) ties with SWA.
05-02-2008, 02:01 PM
#28
Gets Weekends Off
Joined APC: Feb 2007
Position: MD80 Captain
Posts: 165
Originally Posted by stinsonjr
That is who I was thinking of...I believe he had an Italian sounding name, but I can't remember. Thought there were others
Thread
Thread Starter
Forum
Replies
Last Post
