Search

Notices
Cargo Part 121 cargo airlines

Oil price hedging...

Thread Tools
 
Search this Thread
 
Old 10-17-2008, 05:46 PM
  #41  
Gets Weekends Off
 
alvrb211's Avatar
 
Joined APC: Jun 2007
Posts: 1,045
Default

Originally Posted by 767pilot
I guess that with a hedge there is always a chance that you bet wrong and lose it all. You lose the upside of a hedge, but also the downside risk is illiminated
Exactly!

VolksWagen lost millions because they took a gamble with hedges. It turned out to be a very big mistake indeed. It could have gone the other way completely but that's the gamble.

AL
alvrb211 is offline  
Old 10-17-2008, 05:52 PM
  #42  
Line Holder
 
Lloyd Bonafide's Avatar
 
Joined APC: Oct 2008
Posts: 27
Default

Originally Posted by alvrb211
Exactly!

VolksWagen lost millions because they took a gamble with hedges. It turned out to be a very big mistake indeed. It could have gone the other way completely but that's the gamble.

AL
Think of hedging as insurance. The only downside is the cost of the hedge. Lots of upside as seen with WN over the past two years. Forget their profit/loss, concentrate on their cash flow.

- LLoyd
Lloyd Bonafide is offline  
Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
SWAjet
Major
14
11-29-2014 05:31 PM
Whacker77
Regional
41
11-19-2008 12:44 AM
Sr. Barco
Major
143
10-13-2008 07:04 PM
Lighteningspeed
Major
84
08-13-2008 09:20 PM
⌐ AV8OR WANNABE
Foreign
0
08-05-2008 11:05 AM

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



Your Privacy Choices