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Neermark
JotunHeim Hird X13 Alliance
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Posted - 2008.10.10 15:10:00 -
[1]
CountryÆs economic crisis lowers prices 10/10/2008 Iceland's Westman Islands (Ragnar Th. Sigur=sso) While IcelandÆs economic woes may leave hundreds of thousands of people, including many in Britain, out of pocket, it means the notoriously expensive country is now much cheaper to visit.
Low-cost airline Iceland Express estimates that the cost of some items has dropped by up to 40%. They say a three-course meal now costs an average of ú35, compared to ú57 a year ago. And the cost of a pint of beer has dropped from ú6.50 to ú4.
This time last year, ú1 would have bought ISK 122. It now buys ISK 200.
Ironically, Iceland Express postponed its launch of flights from London Gatwick to Reykjavfk earlier this summer. The airline was going to begin services on 16 September but will now start them in the spring. It cited high fuel costs as the reason for its decision.
At the time, spokesperson Birna Gudmundsd=ttir commented: ôIceland Express is remaining cautious in the current uncertain economic climate, while continuing to deliver the best possible service at the best possible price.ö
The low-coster already flies from Stansted to the Icelandic capital.
As the euro has strengthened against the pound, many travellers have headed to the likes of Turkey and Egypt. However, a recent Post Office survey found that prices in these countries were on the up.
Edit: Highlighted important info for people going to Fanfest....
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Straight Chillen
Gallente Solar Wind
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Posted - 2008.10.10 15:29:00 -
[2]
this is nothing new. For example the past few months with the dwindling economy here in the US, theres been a boom in forigner coming to NYC. The best part, They come with empty bags, buy stuff dirt cheep and take it home. |
Neermark
JotunHeim Hird X13 Alliance
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Posted - 2008.10.10 15:31:00 -
[3]
Originally by: Straight Chillen this is nothing new. For example the past few months with the dwindling economy here in the US, theres been a boom in forigner coming to NYC. The best part, They come with empty bags, buy stuff dirt cheep and take it home.
Going to NYC next week \o/.... |
Cmdr Sy
Appetite 4 Destruction The Firm.
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Posted - 2008.10.10 15:55:00 -
[4]
Edited by: Cmdr Sy on 10/10/2008 15:55:38
I might make it to the fan fest next year if there is still CCP and EVE. By then it will probably be using the Euro. Does anyone know whether the jet fuel supplier there trades in dollars? If it does, all is well. If there are complications, getting stuck during winter would suck.
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Neermark
JotunHeim Hird X13 Alliance
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Posted - 2008.10.10 16:10:00 -
[5]
Originally by: Cmdr Sy Edited by: Cmdr Sy on 10/10/2008 15:55:38
I might make it to the fan fest next year if there is still CCP and EVE. By then it will probably be using the Euro. Does anyone know whether the jet fuel supplier there trades in dollars? If it does, all is well. If there are complications, getting stuck during winter would suck.
Normally airlines make a contract to flatline the jetfuel price, these contract will normally be in dollars as the rest of the oilmarket. So getting stuck will only be problem if the whole airline goes bust... |
Kerfira
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Posted - 2008.10.10 16:21:00 -
[6]
Originally by: Straight Chillen this is nothing new. For example the past few months with the dwindling economy here in the US, theres been a boom in forigner coming to NYC. The best part, They come with empty bags, buy stuff imported from China dirt cheap and take it home.
Corrected it for you |
Cmdr Sy
Appetite 4 Destruction The Firm.
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Posted - 2008.10.10 16:43:00 -
[7]
Originally by: Neermark Normally airlines make a contract to flatline the jetfuel price, these contract will normally be in dollars as the rest of the oilmarket. So getting stuck will only be problem if the whole airline goes bust...
In the kind of market we have had this year, I doubt the contracts would have been very long in duration. Any idea what kind of hedges they used against sharp future increases? I am starting to think, what if some went long near the peak as a hedge... it would be ironic if plummeting oil prices bankrupted an airline.
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Neermark
JotunHeim Hird X13 Alliance
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Posted - 2008.10.10 16:50:00 -
[8]
Originally by: Cmdr Sy
In the kind of market we have had this year, I doubt the contracts would have been very long in duration. Any idea what kind of hedges they used against sharp future increases? I am starting to think, what if some went long near the peak as a hedge... it would be ironic if plummeting oil prices bankrupted an airline.
I could not agree, more but there is a real chance this could happen. I think some of the airlines actually bought long, as they thought that the price of the oil would go up further.... |
Cmdr Sy
Appetite 4 Destruction The Firm.
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Posted - 2008.10.23 19:49:00 -
[9]
Originally by: Neermark
Originally by: Cmdr Sy In the kind of market we have had this year, I doubt the contracts would have been very long in duration. Any idea what kind of hedges they used against sharp future increases? I am starting to think, what if some went long near the peak as a hedge... it would be ironic if plummeting oil prices bankrupted an airline.
I could not agree, more but there is a real chance this could happen. I think some of the airlines actually bought long, as they thought that the price of the oil would go up further....
Airlines hit by economic turbulence
Originally by: "BBC" American airline US Airways shares fell as much as 14% after it unveiled losses of $865m (ú537m) for the third quarter of the year.
US Airways' losses included a $488m (ú301m) loss from its fuel hedging program
The snares are there alright... |
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