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I think was very wise and prudent SWA, that got where it is. I still do not know why they taxi 2 engine!
A little bit of all 3 I would imagine and it worked for them in the end and will probably continue to work as long as they follow the model they have set up for hedging.Originally Posted by Boogie Nights
Let hope when oil drops companies follow SWA's example and hedge (assuming they have some cash). I am not sure if SWA was lucky, insightful, or just prudent when they hedged. A big problem with airlines are that their costs are not fixed. I suspect SWA decided at what fixed fuel cost they could operate at and still make a healthy profit, took some cash on hand and hedged. By hedging they fixed their prices (to a degree) for a decade. If airlines take their remaining cash and lock their prices in (rather than give exec bonuses, or pay out to share holders) Airlines could remain healthy and stable. Then we could negotiate contracts with no fear increased wages with kill the company.I think was very wise and prudent SWA, that got where it is. I still do not know why they taxi 2 engine!
They taxi on 2 because they can afford to ?