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Author Topic: Fuel costs on the rise  (Read 6701 times)

Offline JumboShrimp

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Re: Fuel costs on the rise
« Reply #100 on: September 27, 2012, 11:35:14 AM »
well i did 10x10% hedges.... still didn't work out very well for me :(

I still think that 10x10% being cheaper than 1x100% is a bug...

Offline CUR$E - God of AirwaySim

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Re: Fuel costs on the rise
« Reply #101 on: September 27, 2012, 11:36:01 AM »
In newer gameworlds it doesn't work anymore to get 10x10. You get an error message when you try to negotiate the second 10% contract.

Offline EsquireFlyer

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Re: Fuel costs on the rise
« Reply #102 on: September 27, 2012, 02:40:46 PM »
I always do either 100% or 0% hedges: With a 100% hedge, I am either angry (if it doesn't work) or happy (if it works). With a 50% hedge, for example, I'm either angry (if it doesn't work) or angry (since i could've hedged more than 50%)... :p

In my personal opinion, that is not the right approach to take. A 50% hedge (or, better, 20% or 30% rolling hedges started at different times) is like an insurance. You will not hit the bottom of the fuel chart, but you know you will not hit the top either.

A 100% hedge is like a slot machine pull. You may win small, win big, lose small, or lose big, and it's purely random/luck unless you have some way of predicting Sami's random fuel prices.

If you pay for auto insurance, you should not get mad if you spend the whole year without a car crash, even if it means the insurance company did not have to pay you anything. Maybe you will have some regret and think "in retrospect I should have just risked it." But since only hindsight is 20/20, the fact that you didn't encounter a disaster that required you to get an insurance payment is not really something to get angry about.

Offline AndiD

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Re: Fuel costs on the rise
« Reply #103 on: September 28, 2012, 06:40:02 AM »
In my personal opinion, that is not the right approach to take. A 50% hedge (or, better, 20% or 30% rolling hedges started at different times) is like an insurance. You will not hit the bottom of the fuel chart, but you know you will not hit the top either.

A 100% hedge is like a slot machine pull. You may win small, win big, lose small, or lose big, and it's purely random/luck unless you have some way of predicting Sami's random fuel prices.

I know, that's why I do it. Normally I don't run airlines whose survival is highly dependent on fuel prices, so I either gamble or leave it (mostly leave it though).

Offline Infinity

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Re: Fuel costs on the rise
« Reply #104 on: October 04, 2012, 05:40:45 PM »
God only knows why it keeps getting cheaper when it's supposed to become more expensive.
(Yes, I'm complaining about too low fuel prices, you got that right).

Offline Meicci

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Re: Fuel costs on the rise
« Reply #105 on: October 04, 2012, 05:57:49 PM »
God only knows why it keeps getting cheaper when it's supposed to become more expensive.
(Yes, I'm complaining about too low fuel prices, you got that right).

Related to that, this must be the worst hedge ever;

Offline Infinity

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Re: Fuel costs on the rise
« Reply #106 on: October 04, 2012, 07:52:23 PM »
Hedging 100% is never good. Trouble is that the low fuel prices prolong the lives of poorly managed airlines.

Offline Meicci

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Re: Fuel costs on the rise
« Reply #107 on: October 04, 2012, 08:01:46 PM »
Hedging 100% is never good.

That's your opinion ;)

Sometimes you lose, sometimes you win.

Offline FlyTO

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Re: Fuel costs on the rise
« Reply #108 on: October 04, 2012, 09:10:53 PM »
Very rare for some airlines to actually wish for higher fuel prices- mine included.

 

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