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Southwest Airlines' legacy of good news
Gosh, it's such a drag reading about business and the economy lately. So, what the heck, let's take a quick look at a perennial source of good news, Clear Thinkers favorite Southwest Airlines. Southwest's discount model of operation has...
Incompetence masquerading as demagoguery
University of Houston finance professor Craig Pirrong (blog here) does a nice job in this Wall $treet Journal op-ed on Friday of explaining how speculation in oil and gas markets helps all of us deal with rising energy prices:...
The instinct against the money-makers
I swear, you can't make this stuff up. As Larry Ribstein cogently explains, Southwest Airlines has taken advantage of futures markets over the past several years to hedge its fuel costs (previous posts on Southwest's hedging program are here)....
Flying the friendly chapter 11 skies of United
After wallowing over three years in chapter 11, United Airlines parent UAL Corp. finally emerged from bankruptcy this past Friday (previous posts here) amidst the usual wave of optimism that greets such achievements. Recent trading in bankruptcy claims and UAL's...
Southwest, you're welcome here
This NY Sunday Times article provides a good overview of the challenges that Southwest Airlines faces in the rough and tumble airline business as its fuel hedging strategy (noted in earlier posts here and here) fades and it faces the...
More on hedging fuel costs
Following on this Professor Ribstein post and this reply post here over the weekend regarding most airlines' failure to hedge fuel costs, this NY Times article reports that the hedging of fuel costs also varies widely in other fuel intensive...
Why don't airlines hedge fuel costs?
The always perceptive Professor Ribstein over at Ideablog asks this question: Given the volatility or oil prices and the adverse impact of high prices on the business of running an airline, why don't airlines hedge their fuel costs? The answer:...
Continental and Southwest Airlines release quarterly earnings reports
Houston-based Continental Airlines narrowed its first-quarter loss, and Dallas-based Southwest Airlines scratched out a small profit as both airlines struggled with higher fuel prices. Continental, the nation's fifth-largest airline in terms of traffic, had a net loss of $124 million...
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