Originally Posted by
raehl311
That's irrelevant. We're not asking which airline planned for $110/barrel. The question is, did any other airlines OTHER than Delta plan on oil staying $65/barrel or lower?
Even if nobody planned on $110, if most airlines planned in case of $85 or $90, and Delta just assumed $65, it still speaks to a complete failure of management at Delta.
OK, so you forced me to go into NW's Reorganization Plan (SEC Filing)
and wade through hundreds of pages just to get this little blurb:
"...Aircraft Fuel for mainline operations is projected to be the Debtors’ largest expense (approximately 28%). Fuel expense incurred by regional affiliates for the operation of regional aircraft is included in Regional Carrier Expense.
Projected Aircraft Fuel cost is assumed to be $1.92 per gallon for 2007, escalating to $2.07 in 2010. The Debtors’ forecast includes projected fuel burn rates by fleet type and accounts for changes in the network over the course of the Projection Period...."
If you're interested in reading this monster, you can find it on the NWA website under SEC Filings and look for the 8-K that was filed on April 2, 2007. It's around the middle of the document in the area of the Projected Financial Statements.
Looked at Delta's reorg plan as well (again, an 8-K filing on March 27, 2007) and it looks like DL assumed fuel at $2.06 a gallon (including taxes) for 2007, with a 5% increase every year.
I assume that NW's $1.92/gallon projection for 2007 is exclusive of taxes; if including taxes, it is around the same ball park as DL's projection ($2.05-$2.07).
Oil was trading at around $3.40/gallon or more yesterday.