Skip to main content

Fuel Hedging in Aviation Industry

 Fuel hedging in aviation

Fuel Hedging is contacted for  the Fuel consuming company such as airlines the made to protect them from rising fuel prices they estimate the cost in which they will buy fuel it is known as Fuel Hedging.

Image show us the person filling aviation fuel in Aircraft


Fuel hedging pros and cons

It will depend on the future prices of the crude oil or jet fuel the airline enters into fuel hedging to save then from rising fuel prices and estimate fuel prices for the airline's budget

Some Airline does not do fuel hedging because

 They can manage rising fuel prices without any effect on their financial condition

 as some airlines analyze fuel prices and predict future prices

or incoming time fuel prices me decrease

it can also be expensive for Airline if Fuel prices will goes down for example due to covid 19 


Labels:

Comments

Post a Comment

Popular posts from this blog

Why Air India is bought by TATA when it in huge loss

Air India  Why Tata buys AirIndia?  Air India is one of the oldest Airlines in India and even the first Indian airline it is formed as Tata Airline by JRD Tata on 15 October 1932. It has a fleet of Airbus, Boeing, and ATR it has more than 120 Aircraft which included wide body as well as narrow-body Aircraft Air India is a member of Star Alliance But from last so many years Air India facing a huge loss and even their services are not as competition is providing     Tatas and Air India As it is formed by the JRD TATA and he treats it like a child he takes of the airline on his own and even the first air India flight is operated by himself from Karachi to Mumbai and also as he is the owner but there is an incident when he cleans the washroom and at that time airline on-time performance is best in the world and also it is known for customer service and also 1 st Asian airline to introduce jetliner Boeing 707 and you surprised to know air India is in the world top 5 airline li
Post a Comment
Read more

Airbus A350 Vs Boeing 787 | Comparison Between Airbus and Boeing

  Airbus A350 Vs Boeing 787 | Comparison Between Airbus and Boeing  As we all know Airbus and Boeing are the biggest competitor in the world of aviation and they are trying to complete with each product as now Boeing 787 and airbus A350 are one of the flagship aircraft of both companies but why we are comparing both of the planes as we know recently Airbus close A380 program and now A350 is gaining a lot of popularity  and B787 is one of the best product from Boeing Airbus A350 A350 is a wide-body long-range aircraft Developed by Airbus in the competition of Boeing 787 Dreamliner and it was proposed by airbus in 2004 and there are two models of A350  1-A350-900 2-A350-1000 Its prototype flew on 14 June 2013 and in 2014 it get a type certificate from the European aviation agency(EASA) and after that Federal Aviation Administration(FAA) Its have a passenger-carrying capacity of 300-350 passengers and a max speed of 0.89 mach and it is powered by a 2-TRENT XWB-97 engine manufactured by Ro
Post a Comment
Read more

MAJOR PLAYER OF INDIAN AVIATION

 1- Air India  (IATA- AI , ICAO- AIC ) Air India is an Full-service Airline headquartered in New Delhi,It was founded by MR JRD Tata in 1932 as TATA Airlines and 1st Flight is flown by  Jrd tata(Father of Indian Aviation)  himself and Air India is the first Asian airline to induct a jet aircraft in its fleet. In 2007 Air India Marge with Indian Airlines under the name of  AIR INDIA LIMITED  in 2014 its become a part of STAR ALLIANCE Now AirIndia is a part of TATA Sons under a  Special-Purpose Vehicle  (SPV) Under the name of   Talace Private Limited  MOTO-Your Palace in the Sky Callsign- AIR INDIA HUB-  Indira Gandhi International Airport  (Delhi)  FLEET - AIRBUS,  BOEING , ATR   2-  INDIGO AIRLINE( IATA-6E, ICAO-IGO) Indigo is a Low-cost Airline with the highest Domestic market share in Indian aviation of 53.5% in October 2021 Its headquarters are in Gurgaon, Haryana, Ronojoy Dutta is currently the CEO of InterGlobe Aviation It commenced operations on 4 August 2006 with a service from
Post a Comment
Read more