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After Iraq's oil supple was disputed in the second Gulf War

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6. After Iraq's oil supple was disputed in the second Gulf War, the price of jet fuel used by airlines increases dramatically. As the CEO of US Airways you have been presented with the following optios to deal with this problem;a. Raise airfares to reflect the expense reduction.;b. Decrease the number of flights per day in some markets;c. Enter into forward contracts to buy jet fuel at a fixed price for the next two years and set airfares to a level that will cover these costs of being hedged.

 

Paper#28218 | Written in 18-Jul-2015

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