Midwest, Air Wisconsin airlines hit by fuel costs (AP) =97 While some airlines have saved a lot of money in recent months=20 through locking in jet fuel prices at prearranged rates, Midwest Airlines=20 and Air Wisconsin have not fared as well in such so-called fuel hedging.=20 "It's a bit like playing craps in Las Vegas," said Dennis O'Reilly,=20 treasurer of Midwest Express Holdings, the parent of Midwest Airlines and=20 Midwest Connect. Part of Midwest's overall cost reduction strategy involves the acquisition= =20 of new Boeing 717 jets that are 25% more fuel efficient than its current=20 McDonnell Douglas DC-9 airplanes. But the company has said Midwest's fuel=20 prices are up more than 70% from a year ago. Midwest placed a hedge last=20 fall to cover 25% of its fuel for December, 20% for the first quarter of=20 2003 and 15% for the second quarter. The reasoning was that war with Iraq=20 would break out then, driving up fuel prices in a way comparable with=20 events surrounding the Gulf War in 1991, with the war ending quickly and=20 fuel prices then dropping to normal levels. "Unfortunately for us, it did=20 not work out that way," O'Reilly said. "The good news is that we have some= =20 hedge. The bad news is we are paying much more" for unhedged fuel. Reilly=20 said that, with limited cash, it has been difficult for Midwest to decide=20 how much emphasis to place on fuel hedges. Air Wisconsin, which operates=20 regional flights for United Airlines and AirTran Airways, has its fuel=20 prices hedged through AirTran, Air Wisconsin spokeswoman Christine Mangi= said. But most of Air Wisconsin's flights are done for United, which does not now= =20 participate in fuel hedging, Mangi said. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.tha.gov.tt/ TnT Webdirectory: http://search.co.tt *********************************************************