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In the two part series of “The Crude Catastrophe”, part 1 focused on the significance of crude price volatility and the hedging strategy adopted by the different airlines. Stepping further, in this IMPACT article part 2, we bring to you the outlook for crude and jet fuel price, surcharges and the varied strategies adopted by airlines to gain a better position.
It is evident that an airline's strategy would be guided by its geography, business model, costs and financial position. While airlines such as in the gulf can plan to build infrastructure given their strategic location between the eastern and the western part of the world; others as those in Europe have to consider ancillary businesses given stiff competition both from regional and gulf airlines.
Read this IMPACT article, to understand how the airlines revisit their strategies to make investments in fixed assets, and focus on change: mainly expansion.