Thread: Travel Announcements Only (No questions or comments please)
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01-12-09 09:25 #232
Posts: 52Hedging is the correct way to operate a business
What you are talking about is speculation not hedging. "If they got caught with their pants down" they were speculating and not hedging. The whole point with hedging is to "never get caught with your pants down or too far up."
All hedging is, is setting the price of the ticket based on what the futures market estimates price of fuel cost will be in the future. When a customer purchases a ticket let's say 2 months in the future you buy 2 month futures contract on jet fuel for the the estimated amount of fuel customer would use. By buying the right amount and time on the futures contract the airline will lock up the price of fuel they will have to pay. That way the airline knows it's future cost of operation.
By not hedging the airlines are essentially unable to determine if they will make money in the future. It's not a good way to run a business. If the price of jet fuel drops or rises you sell tickets at the current future prices and lock up the price. If in the future the price of jet fuel drops you loose money in the futures contract but gain by buying fuel at a lower price. Conversely, if the price of fuel prices rise you gain on the futures contract and use the profit to purchase the higher cost jet fuel. The whole purpose of hedging is reverse of speculation. You want to stabilize your fixed operating cost to know in the future that you can make a profit.
If you somehow you buy more future contracts than you have tickets sales you might as well be out of the airline business if the price of fuel drops since you won't be able to come up with margin requirement when the future contracts fall. Most airlines in the US are unable to hedge due to the large amount of collateral they need to secure margin requirements if the price of the fuel falls. Only Southwest had the balance sheet to hedge fuel prices. I am sure most of the stronger international air carriers that have a strong balance sheet are able to hedge.
The whole point of hedging is just to lock up a future price of fuel based on present tickets sales which are for flights in the future.
If the futures market contracts didn't exist and airlines wanted to protect themselves they would have to purchase actual jet fuel at the time of ticket sales and store it and release in the future when your flight takes off. Since physically storing fuel is costly, by purchasing a contract of fuel delivery in the future the airline can control costs but not have to physical store any fuel.
Originally Posted by DuniawalaLast edited by Mr_Hoffy; 01-12-09 at 09:53. Reason: add title
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01-11-09 15:02 #231
Posts: 11Peoples interested in threesome or foursome?
I'm looking for friends for do threesome or foursome in Pattaya or around Thailand.
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01-10-09 19:17 #230
Posts: 65Bangkok Airport to Pattaya
Will be arriving in Bangkok International Airport at 8 pm Sunday night. Clearing immigration/customs hopefully in half hour. Booked a hotel in Pattaya.
Can oneone advice on how to take a Bus from the Airport to Pattaya? Is 8:30 pm too late for a bus? Really wanted to save the dough for other things.
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01-09-09 18:37 #229
Posts: 1719Originally Posted by JackzonianLast edited by Admin; 01-11-09 at 16:58.
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01-09-09 16:41 #228
Posts: 156Originally Posted by Thomrn10
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01-08-09 23:28 #227
Posts: 88Thai Airways Int'l Fare reduced
Tai finally knocked about $200. 00 off their LAX flight. I jumped all over it.
In the past, the best deal for me was Cathay deal-of-the-month out of JFK or LAX, but remember, you have that final lay-over in HK en route. That final leg was a short hop, but it was one more landing and take-off, and one more layover, and one more opportunity to lose your bag.
Right now, this new fare from TAI is dead close to the best price you can get at Cathay. And it's direct into BKK. A real bonus, and you don't arrive at mid-night. If you can get yourself to LA with some miles or a cheap domestic flight, the hop to BKK is best out of LAX. (You can go cheaper with China Air or some Korean bucket shops, but your final leg will destroy you. 7+ hours out of Seoul or Tokyo or Beijing. A killer.)
Economics: the best minds on the planet cannot figure out how Airlines set fares, so don't expect genius here. But. I could not understand how TAI was sticking to the high prices after the mini-revolution in November. Tourism is appx 13% of their GDP and it went to zero. Add to that, TAI was losing appx $13million per day. And prices weren't coming down through December after things opened up. WTF? On close inspection of my fare details, I think what happened was this: they reduced the "tax" aspect of the ticket. I suspect the airline needs a fixed amount to run the plane (s), fuel, expenses, etc. , so they weren't lowering fares. So perhaps the Gov't stepped up and lowered their cut, probably in order to induce travelers.
Anyway, maybe that's more than you needed to know, but I'll take any reply on my note here. Info is power, right? Be cool. Jck
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01-05-09 03:21 #226
Posts: 61Pattaya Jan 26-Feb 8
I'll be in Pattaya from Jan 26 - Feb 8. Some Pattaya activities work much better when you're not alone ... scan soi 6, for example.
Have been to Pattaya many times .. and I always have to come back !
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01-04-09 06:09 #225
Posts: 4114good to be retire
Originally Posted by RetiredForever
It is nice to able to take 4 month off, you should rent a condo by the month if you stay that long, it is good to be retire. The most I can stay is 4 days at a time.
Fast eddie 48
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12-30-08 00:46 #224
Posts: 58Pattaya Jan 22-april 20
Will be in Pattaya from January 22 until April 20. If you want to get together drop me a PM. Staying at Pig & Whistle on Soi 8. Have been there a number of times so know my way around.
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12-24-08 04:21 #223
Posts: 1I'm gonna be there from Jan 14 to Feb 2nd. Staying at Secrets.
I will be Pattaya from 14/01/09-05/02/09.
Anyone fancy meeting up then let me know.
Last trip I met up with Belmont from the board we had a blast.
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12-22-08 23:15 #222
Posts: 36Dec. 29th Sfo to Pattaya
Leave Dec 29 on Eva from sfo
Arrive in Bangkok 1115am
If anyone is on the flight as in years past, I would love to share a taxi.
Otherwise, I will take the bus to Pattaya.
Staying at Secrets for a week before heading to Laos, Cambodia, Vietnam and the Philippines.
safe travels
T
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12-22-08 12:03 #221
Posts: 148Lazy!!!
Originally Posted by Jodi In Heat
http://www.internationalsexguide.inf...ead.php?t=2793
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12-22-08 09:53 #220
Posts: 14Originally Posted by Iron Duke
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12-22-08 08:28 #219
Posts: 7Taxi To Nana Hotel
When you get to the airport, avoid the Taxi touts inside the airport. They are well dressed kids who will politely ask you if you need a taxi, where you are going etc. Just smile at them and go outside to the Public metered taxi stand. The lady at the desk will give you a ticket and there is a line of taxi's waiting for your business. Cost to the Nana hotel should be a little less than 400 baht. Your cab driver will ask if you want to take the toll road. You should say yes and he will then ask you to give him money for the toll (I think the total is 70 bht) or he will add it to the bill.
Whenever I use cabs I always try to have correct change. If you don't have baht, there are plenty of ATMs and a big Money Exchange stand at the luggage pick up and there are plenty of places in the airport to make change.
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12-21-08 20:42 #218
Posts: 31Airport to Nana Hotel
How much should this cost me, either taxi or bus.
How do I do this?
Thanks