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May 23, 2005

The Cash-Poor Firm

travel southwest airlines head on The behinder you get, the harder it is to get aheader.

As Larry points out, in the airline industry, the airlines in bankruptcy or on the brink of bankruptcy are not hedging, but the profitable Southwest Airlines (my "hometown airline") is profitable, and so is able to hedge. Because it is able to hedge, it becomes even more profitable. The airlines who cannot afford hedging programs incur more losses.

 

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The Cash-Poor Firm

Posted on May 23, 2005 02:38 PM by southw138.
Filed in Travel Blog under southwest airlines.
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