RE:RE:AIMIA REJECTS BID BY AIR CANADA, TD, CIBC AND VISA CANADA CO The biggest problem with fuel hedges is they end up costing more if the price of fuel drops or even stays steady. Crude oil has been a very volatile commodity lately due to US politics and the impacts that has on speculators. WJA and AC would have to conduct an analysis to determine if it's worth setting up a contract to isolate themselves from the variations. Similarly - the oil providers also do this when it comes to setting their contract prices to minimize their losses. Guess which one knows what the future prices are going to be like better...
Volume, additionally, has a relatively small impact on price when it comes to fossil fuels - higher demand tends to increase prices at pumps for any type of fuel, be it gasoline, diesel, fuel oil or kerosene. They have no problem getting buyers for it, it's the product that is limited.
Regarding redundancy for mechanical failure... this one is in the pending checklist I got. We have two planes scheduled for first half of next year, and personally - I would like to hear that more will follow very shortly after. Westjet started with 5, if I remember... and that early fleet was grounded for a couple weeks shortly after because Transport Canada's safety requirements at the time weren't being met.
Good luck with trading, I'd like to see a lot of people make money here.
trader520 wrote: Don't quite agree with "Jetlines timing couldn't be more perfect".....So they lost money...so what....they will make money in the next quarter.
Westjet had the pilots strike issue, and fuel costs. Air Canada had fuel costs. Beleive me, Westjet and Air Canada due to volume and hedging (same goes for Swoop, piggybacking on Westjet) can buy fuel for less than Jetlines ever will be able to dream of. Jetlines will pay pump price. Jetlines affected by fuel price same as everyone else (percent wise).
Swoop expanding with lotsa new routes and more planes, see below.
https://www.cbc.ca/news/business/swoop-u-s-destinations-1.4771107
The other scenario I wanted to bring up, is....what if Jetlines goes mechanical? Who will rescue the load? A company with three or four airplanes can't rescue the stranded pax without delaying others (see ZOOM and SUNWING when they did their 767 operation one summer, also see Westjet when one of their four 767s goes mechanical)....as for Swoop, well, I am sure Westjet can rescue the load with a spare airplane, and keep the media off their back.
The timing for Jetlines couldn't be more perfect....IF they had a timeline!!!!
I hope Jetlines gets off the ground, but I am only putting trading money on it....buy the dip, sell the high, before the bubble bursts