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Old Nov 2, 2008 | 4:14 pm
  #1822  
ualcap
 
Join Date: Sep 2008
Posts: 74
Ferry Fuel

Originally Posted by marcus613
how much cheaper can it be? It must cost quite a bit to get it aloft and carry it transcon.
Does this really make sense?
I regularly ferry as much fuel as possible in to ORD & DEN. Fuel at those stations has been greater than a dollar more expensive that other stations (greater than 30-40% higher costs).

We have been briefed that we burn appx. 10% of the extra fuel we carry in order to carry that extra fuel. So, to answer your question, yes it makes a lot of sense to carry as much fuel as SAFELY possible when flying in to high cost stations such as ORD or DEN.

Nothing really new here. We've been tanking gas for years when the cost differentials were significant. Where our failed mgt dropped the ball was in regards to hedging strategies. UAL's ceo came here from the oil business. You would think a former oil executive would grasp the concept. LUV was very successful with their hedging program. His failure to hedge when it would have benefitted us greatly was followed by hedging at higher prices when oil prices plummeted. Now it's costing the company MILLIONS. I guess that's why Tilton is a "former" oil executive. Looking forward to the day he is a "former" airline executive.

Last edited by ualcap; Nov 2, 2008 at 4:15 pm Reason: format
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