YOU WERE LOOKING FOR :Should Airlines Hedge their Fuel Purchases
Essays 1 - 30
the firm to the relevant stakeholders (Chyssides and Kaler, 1998). When looking at the way airlines in particular operate prote...
(Howells and Bain, 2007). Forwards Forwards are the oldest and perhaps the simplest type of derivative. The contract consists of ...
to the airlines: they have to buy the fuel at the agreed upon rate regardless of what happens to the actual market value of fuel. ...
in a good position, because it will have hedged for a lower price than the fuel is now actually worth. On the contrary, if the pri...
paragraph helps the student provide an overview of the issue of fuel hedging. Hedging, as a generality, is a common investment tac...
that the organization can ensure that they continue to purchase fuel at the current rate, even if the actual market value of the c...
one of these concepts represents a total image of the truth of theory. Rather, a synthetic view of theory developed from exploring...
of hedging and how the airline will fare will depend partly on the type of instrument they use (Flottau & Wall, 2008). This is a g...
numerical, it is suitable to be used as a method of determining cause and effect relationships (Curwin and Slater, 2007). The meth...
industry (Hashim and Shunmugan, 2009), Morrell and Swan (2006) argue that up to 15% of costs are accounted for by fuel, five years...
were gathered and analyzed statistically using Tobins Q ratio approach. The research did not only look at the difference between t...
Clark E; Lukas E, (2008, Nov), Hedging mean-reverting commodities, retrieved http://papers.ssrn.com/sol3/papers.cfm?abstract_id=12...
questions to be addressed with the research is to assess whether or not it is in the interests of the shareholders, assuming they ...
means that even in years where many airlines faced losses and even bankruptcy, Southwest Airlines remained profitable, with hedgin...
be used for a number of reasons, Corman (1996) notes that there are potential benefits to managing Cash flow for some hedging prac...
reviewing some of the important issues in the literature which have guiding the way that the data was collected and analyzed. Foll...
of market conditions at the times airlines do not need to utilize fuel. Brooks and Carter et al. (2006) observed that hedging pra...
theory with grand theoretical systems, when talking of psychology cites psychoanalysis and behavorism as grand theories. Here ther...
The writer proposes a research method to collect data from airlines to determine if airlines that hedge are more profitable compa...
organizational design. From this perspective, organizations are viewed as systems constructed to achieve goals (Freeman, 1999). ...
the hedging category for the years in which undertook hedging. The results may be correlated to see if there is a snippet differen...
The writer looks at potential research designs to assess which would be most appropriate for research into financial performance o...
airline operating costs. Increasing costs can have a significant impact on the profitability of a firm; this has been particula...
approach to research. The suitability of any research design may be assessed in terms of the viability, robustness and validity of...
The theory of constraints is examined as a suitable theory to be used in an assessment of the value of airline fuel hedging and t...
vary, Morrell and Swann (2006) estimates fuel accounts for 15% of an airlines costs, noting it is not only a major cost, but also ...
Mintzberg et al, 1998). Successful and effective risk management may even be the source of a competitive advantage (Rose, 2001, P...
The writer looks at the way a firm can protect itself from exposure to risk by using hedging tools. The use of currency purchases...
years (if any) has fuel hedging taken place (classified by the maturely date of the hedge tool), and what percentage of fuel was h...
flux, with both the supply of the product varying, and the amount of demand also fluctuating due to other related factors. If we c...