Maxwell Harrington / Chief Financial Officer
Perspectives from a life in leadership.
The latest essay
Regional airlines with contract charter work often hedge their entire fuel consumption. Where customers already carry fuel through pass-through clauses, that hedge is a speculative position, and boards should ask to see the net exposure instead.
Read the essayRegional airlines with contract charter work often hedge their entire fuel consumption. Where customers already carry fuel through pass-through clauses, that hedge is a speculative position, and boards should ask to see the net exposure instead.
Boards often compare leasing and owning aircraft as two ways of financing the same asset. For a regional operator the larger difference lies in who carries engine maintenance and return conditions, and in whether the commitment outlasts the contract that pays for it.
State governments that want thin regional air routes kept open often grant exclusive rights and expect fares to cover the cost. The bus contracts our cities already use offer a better model: pay for the service, keep the fares, and say who carries each risk.