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Old Oct 21, 08, 4:59 am
  #42  
JNB280
 
Join Date: Mar 2008
Location: ORD
Posts: 654
Originally Posted by r415 View Post
If oil really drops to $50, AA should be hedging like mad. If AA management isn't incompentent, they are already hedging at the current price. There's still far too much demand for oil to drop to $30 anytime soon.
So management is incompetent if they don't hedge now, but if they didn't "go mad," and oil did drop to the $30-$50 range, what would they be then?

/Rant/

I like that so many are excellent at pointing out AA management's flaws during the current fuel situation, yet the percentage of those who've ever actually hedged anything in the futures markets is probably on the short side of 5%. Where were all the AA board market wizards when oil topped in early July? Why weren't they screaming for AA to short the market at those levels? Bottom line, this is unprecedented volatility in markets across the board, and acting like you've got this thing pegged is nothing short of laughable. Complain as you will about surcharges and perceived exorbitant fares, it's your right, but don't pretend like you could do a better job trading/hedging given the current circumstances, because you simply can not.

/Stepping down from my soap box now./
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