Airline Pilot Central Forums - Getting "Nimble" (latest from ePravda)

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Quote:

Originally Posted by Army80 (Post 1985058)

I think they learn in business school to occasionally toss a few overboard; the remaining tend to row faster.

An empty cubicle in your cubey-hood can be a motivator.

Many successful corporations do this all the time, bottom 5/10 % of performers get the toss. My MBA sons both tell me this the way you rid your self of deadwood so to speak...:(

Maybe it's the bottom 14% to make the pay raise a break even😜

Quote:

Originally Posted by Army80 (Post 1984701)

We can only hope that the folks that run the fuel hedging program are part of the group getting "nimbled".

Maybe we should hire some "super smart" pilots to run fuel hedging.

I know it's popular to shoot the hedgers, but really, had anyone who claims they knew in 2013 that fuel would be $40 / barrel in 2015 should have shorted the market and made "Billions"

If Iran shows that they have a bomb, or any other major disruption to oil production, or demand goes back up and oil had spiked to $200/barrel, Delta would have looked like a genius having the hedges.

It's basically insurance. You can go without it and not have a loss and look really "smart" or you pay your premium and be pleasantly happy that you didn't have to use it, but if it's needed and not in place.... well you only get to make that mistake once.

Quote:

Originally Posted by full of luv (Post 1985292)

Except the guy RA and EB hired was considered a radical in the hedging world. He ended up being fired/quitting after Delta was served a subpoena because he was trading commodities in his personal account ahead of big deals he was getting ready to make for Delta. It might have been wiser to hire a smart pilot.

Quote:

Originally Posted by LetsRoll (Post 1985376)

Or have parity with your peer the largest airline in the world. No hedges. Market forces always force fuel surcharges when fuel spikes. I am still paying a fuel premium for my trash pick up. How the **** can they get away with that? Hire those fuel guys.

Seriously who wants fuel hedging?
I know I canceled my health and car insurance after the first couple of years, because I haven't ever gotten into any accidents.:rolleyes:

Insurance mitigates financial risk. Hedges gamble on price. One can argue they are an educated speculation but they are not insurance. When was the last time you paid more than the initial premium for insurance. If you pay to unwind your insurance that is a stupid move. If your competitor isn't making that same gamble, then what are you protecting against?