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A Case of Fuel Hedging: Alpine Air Express

It’s not about cars, it’s about planes. The idea is the same. Alpine Air Express has locked in fuel costs for the rest of 2007.

Management says it is important for 4 reasons:
1. Fixing costs could add over $1 million to profits based on last year’s costs
2. Fixing costs of fuel reduces risks (ie. natural disasters, unrest in the Middle East, etc)
3. Reducing a volitile expense reduces market risk, soothes shareholders
4. Alpine locked in price when oil was lower vis-a-vis current and historical prices

Does this sound familiar to you? It should! Gas-Lock Advisors can do the same for you. Sleep as soundly as Alpine execs.

Note to self: check in same time, same place next year to see who is smiling.

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