Fuel hedge opportunity seen by Virgin America
On Saturday, the chief executive of airline Virgin America said that lower fuel prices present a sole opportunity to hedge buying up to four years.
In an interview, David Cush explained, “The tough economy could push back the profit target of the company, founded last year, to 2011 from 2010, and that the airline would stay at the current size, 28 planes, for 1 1/2 to two years.”
Cush added, “Virgin America, in which Richard Branson's Virgin Group VA.UL has a minority stake, has enough funds to last three years.”
Cush was speaking on a flight to examine a novel Wi-Fi wireless Internet system, which the company plans to roll out on all its planes by the Q-2 of 2009.
Since it has become difficult for airlines to manage due to unstable fuel costs, hedges are instruments that effectively lock in long-term prices.
Cush further added, “We see a pretty unique opportunity with what's going on in the fuel markets right now to go in and lock in some long positions.
would imagine over the course of the next several weeks that we will be going out two and three, and perhaps even four years into the fuel market and locking in some of the prices that are there today.”
United Kingdom News
- William Hill to merge online and retail divisions with Phil Walker in-charge
- BGC impressed by steps taken by UK casinos, disappointed by Government’s response
- Stephen Cohen reappointed as Commissioner of the Gambling Commission
- Online Sports Bettors don’t turn to Online Casinos during absence of sports: Research
- Blueprint Gaming launches Rhino Rampage video slot with new bonus feature concept