Z
z106
Guest
After the monumental mistake that Michael O'leary made in not hedging oil, is it time for him to go?
i.e. Is this too big a mistake to forgive him on ?
Ryanairs defence this evening on teh news was laughable.
Their defence was that they are experts in running an airline - not in predicting the short term trends of oil.
i.e. Don't blame us they said.
But surely if that is the case, then that was all the more reason to hedge ?
i.e. Eliminate the risk where you lack expertise - instead they did the opposite.
(And besides - the buying of oil is an integral part of running any airline. Managing your oil risk is something that airline experts should not get so wrong)
Because - by choosing not to hedge was in effect ryanir playing the market by effectively going short/static on oil - of which,by their own admission, they are not experts.
And it has cost them dearly.
i.e. Is this too big a mistake to forgive him on ?
Ryanairs defence this evening on teh news was laughable.
Their defence was that they are experts in running an airline - not in predicting the short term trends of oil.
i.e. Don't blame us they said.
But surely if that is the case, then that was all the more reason to hedge ?
i.e. Eliminate the risk where you lack expertise - instead they did the opposite.
(And besides - the buying of oil is an integral part of running any airline. Managing your oil risk is something that airline experts should not get so wrong)
Because - by choosing not to hedge was in effect ryanir playing the market by effectively going short/static on oil - of which,by their own admission, they are not experts.
And it has cost them dearly.