News Column

Reports Summarize Air Transport Management Study Results from North Dakota State University

May 10, 2014



By a News Reporter-Staff News Editor at Journal of Transportation -- Investigators publish new report on Air Transport Management. According to news reporting originating in Fargo, North Dakota, by VerticalNews journalists, research stated, "Fuel hedging is a common risk management tool used in the airline industry. But past studies have not addressed the question of whether fuel hedging creates any benefit to airline operations."

The news reporters obtained a quote from the research from North Dakota State University, "This study is the first work that empirically examines the role of fuel hedging in reducing airlines' operating costs. Using US airlines data from 2000 through 2012, we find that, after accounting for the presence of cost inefficiency, fuel-hedging airlines had about 9-12% lower operating costs, but this effect is statistically insignificant."

According to the news reporters, the research concluded: "Irrespective of the hedging status, US airlines could reduce operating costs by an average of 12-14% per year without reducing output."

For more information on this research see: Fuel hedging and airline operating costs. Journal of Air Transport Management, 2014;36():33-40. Journal of Air Transport Management can be contacted at: Elsevier Sci Ltd, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, Oxon, England. (Elsevier - www.elsevier.com; Journal of Air Transport Management - www.elsevier.com/wps/product/cws_home/30438)

Our news correspondents report that additional information may be obtained by contacting S.H. Lim, North Dakota State University, Dept. of Accounting Finance & Informat Syst, Fargo, ND 58108, United States.

Keywords for this news article include: Fargo, Airlines, North Dakota, United States, Transportation, Air Transport Management, North and Central America

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


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Source: Journal of Transportation


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