AirwaySim
Online Airline Management Simulation
Login
Username
Password
 
or login using:
 
My Account
Username:
E-mail:
Edit account
» Achievements
» Logout
Game Credits
Credit balance: 0 Cr
Buy credits
» Credit history
» Credits FAQ

Author Topic: Experience with Hedging?  (Read 497 times)

Antob

  • Former member
Experience with Hedging?
« on: March 06, 2013, 02:31:28 PM »
Is there anyone who has experience with fuelhedging?


Offline Andre

  • Members
  • Posts: 1091
Re: Experience with Hedging?
« Reply #1 on: March 06, 2013, 02:47:08 PM »
Is there anyone who has experience with fuelhedging?



Yes :) It's a gamble, because there aren't any indicators on what the fuel price is going to be. But there are trends. Over time, it's guaranteed that it will increase. It usually follows historical perspectives, with a big jump in the early 80s, then gradually increase until the 2000s where it will jump again.


Antob

  • Former member
Re: Experience with Hedging?
« Reply #2 on: March 06, 2013, 02:56:38 PM »
I agree and then you can only hedge for a short period......

Offline freshmore

  • Members
  • Posts: 465
Re: Experience with Hedging?
« Reply #3 on: March 06, 2013, 02:58:44 PM »
Yep, most people have won the gamble and lost the gamble as well, great if you call it right. Worth noting on the historical perspectives note, sami has said the fuel prices are fully custom throughout the gameworld. Which could me that historical fuel spikes are less important and it is a just a matter of being ready at any time! Although it could also mean that if historical fuel spikes are in this game world then it would be entirely possible that these fuel spikes will be more significant than before. Personally I think goat sacrifice is a good a way of telling what will happen than every other method, although seen as I am based in Canada for this GW it would probably be easier to procure Moose's for the purpose of sacrifice!

If you want my thinking, I think there are a few surprises in store for us on the fuel price front especially in the later years of the game!

brique

  • Former member
Re: Experience with Hedging?
« Reply #4 on: March 06, 2013, 04:53:55 PM »
Indeed, a well-necromanced goat is about the only sure-fire method of divining fuel movements : the other view is that hedging fixes the price for the term of the hedge, giving you less fluctuation in a (the?) major cost variable so you can judge overall route profitability easier. This is pretty useful for high-fuel usage routes, such as long haul. By staggering your hedges in 10% bites each month, you can cushion the effects of any spike. This does also mean you cushion any falls in price, but, as historically, fuel goes up a lot more than it goes down, in the long term, you should win.

 

WARNING! This website is not compatible with the old version of Internet Explorer you are using.

If you are using the latest version please turn OFF the compatibility mode.