LUV Adjusts Fuel-Hedging Strategy

[Dumb Pilot]

UPS? FEDEX?

A minuscule percentage of pilots are getting on with those companies, It takes baby sitting Fred's grand kids or spending lots of money in drinks for the northern Mississippi flying club to even get an interview, that is really not a viable option for the vast majority of pilots right now

 

[Daddy]

UPS? FEDEX?

I dont know about UPS, but FDX is still talking about possible furloughs...they are both heavily tied to the economy and often act as leading economic indicators.

 

[UALjan15]

While I am not a big fan of selling jets to lease them back, I only hope they are using that cash to buy up hedges at the $30 dollar level to lock in the rate there.

Just because oil temporarily visits the $30 range does not mean you can "lock in" at that price (unless you want to store the oil at DAL). Not going to be any takers on the other side of the deal for a $30 hedge option, especially the longer term options that LUV tries to lock up. That said, I'm curious how low the contracts have gone.?.

 

[Bavarian Chef]

A minuscule percentage of pilots are getting on with those companies, It takes baby sitting Fred's grand kids or spending lots of money in drinks for the northern Mississippi flying club to even get an interview, that is really not a viable option for the vast majority of pilots right now

It is my understanding that they are not hiring and haven't for some time. My buds on the slave ship are getting mutinous.

 

[radarlove]

Just because oil temporarily visits the $30 range does not mean you can "lock in" at that price (unless you want to store the oil at DAL). Not going to be any takers on the other side of the deal for a $30 hedge option, especially the longer term options that LUV tries to lock up. That said, I'm curious how low the contracts have gone.?.

Perhaps it's time to take a finance class.

 

[RP170]

UPS? FEDEX?

NetJets is a great gig. Much different than airline flying but in a good way.

 

[hockeypilot44]

NetJets is a great gig. Much different than airline flying but in a good way.

Netjets is stable. I've heard it is much better than a regional, but I know quite a few pilots that went to Netjets while furloughed only to return to their mainline airline when recalled. Good for you if you enjoy it though. It is different. UPS and Fedex probably won't be hiring for a long time. Cargo flying is different also. Fedex might even furlough. If UPS does hire, you will be based in ANC. There are no good jobs to apply to right now. Cathay Pacific might be an option.

 

[AA767AV8TOR]

Sorry for interrupting the banter back and forth, but getting back to the article....

The article points out what I was hoping SWA would be doing in low price enviroment... unloading their high priced hedges.

It seems to me that they are just returning some high cost hedges, raising some cash, and hopefully buying some low cost hedges for the next few years.

Just one opinion, take it or leave it.

Cheers!

ALSF 2,

The problem of the returned fuel hedges for LUV is now their company is more or less on an equal footing with the rest of the industry. This has not been the case the last five years. Since 2003, LUV has not been so much of a great airline as a great fuel hedging company. The hedges have masked a lot of their internal problems.

As is well known around here, LUV’s fuel hedging strategy (whether by blind luck or by skill and cunning) created major headaches for the rest industry when Southwest was able to keep prices artificially low which continued to put the hurt on the rest of us as we tried to climb out of the 911 hole.

Now that advantage has been largely negated. With the economy in the dumps, their cash dwindling, and gas prices increasing; the next five years for Southwest will be very different from the last five.

I’m on record in this forum as being very disappointed with the direction SWAPA took when they had their “time in the sun” to do some very positives things for our profession and to set some high benchmarks for us all to aim for but choose instead to push toxic items such as Age 65. Now their window of opportunity is starting to close if not slamming shut.

I just hope SWAPA is able to tow the line on what their management wants to do with international code share. If your union losses on that one, we’re all pretty much screwed.

Because of the continuing threat to our careers, APA has taken a very hard line on the AMR/BA/IBERIA deal. Over the years, code sharing has proven to be of very little value for the American Airline pilots in regards to pay, growth, and jobs and instead has proven to be a big win for management and the consumer. It like we’re on a slow melting iceberg. Perhaps the Northwest of UAL guys could chime in here on how their codesharing has positively or negatively impacted their careers.

Over the next few years, SWAPA will be severely tested. I sincerely wish them the best of luck. Our careers depend on it.

AA767AV8TOR

 

[Frank Lorenzo]

Over the next few years, SWAPA will be severely tested. I sincerely wish them the best of luck. Our careers depend on it.

All of the pilots are depending on SW pilots for their futures? Wow. Things are more dire for the pilots than I thought.

Tell you what......I will get together my buddies from the ATA and we will set up a ceremonial table for you guys to sign on to our terms of surrender. Just let me know what base works out best for you.

We promise to make penetration as quick, painless, and well-lubed as possible.

 

[bravodude]

ALSF 2,

The problem of the returned fuel hedges for LUV is now their company is more or less on an equal footing with the rest of the industry. This has not been the case the last five years. Since 2003, LUV has not been so much of a great airline as a great fuel hedging company. The hedges have masked a lot of their internal problems.

As is well known around here, LUV’s fuel hedging strategy (whether by blind luck or by skill and cunning) created major headaches for the rest industry when Southwest was able to keep prices artificially low which continued to put the hurt on the rest of us as we tried to climb out of the 911 hole.

Now that advantage has been largely negated. With the economy in the dumps, their cash dwindling, and gas prices increasing; the next five years for Southwest will be very different from the last five.

I’m on record in this forum as being very disappointed with the direction SWAPA took when they had their “time in the sun” to do some very positives things for our profession and to set some high benchmarks for us all to aim for but choose instead to push toxic items such as Age 65. Now their window of opportunity is starting to close if not slamming shut.

I just hope SWAPA is able to tow the line on what their management wants to do with international code share. If your union losses on that one, we’re all pretty much screwed.

Because of the continuing threat to our careers, APA has taken a very hard line on the AMR/BA/IBERIA deal. Over the years, code sharing has proven to be of very little value for the American Airline pilots in regards to pay, growth, and jobs and instead has proven to be a big win for management and the consumer. It like we’re on a slow melting iceberg. Perhaps the Northwest of UAL guys could chime in here on how their codesharing has positively or negatively impacted their careers.

Over the next few years, SWAPA will be severely tested. I sincerely wish them the best of luck. Our careers depend on it.

AA767AV8TOR

Don't you guys belong to the oneworld alliance.
Did the APA cave in giving away international scope relief when AMR joined the one world alliance.
I have been verry disapointed wth the direction that the APA has taken in regards to giving away both domestc and international codeshare and scope protection.

I have some advice for you- take care of your own house first!