Newly appointed Flydubai COO Ken Gile plans to keep costs down at his new low cost carrier by hedging the cost of fuel, a strategy most notably used by perennially profitable Southwest Airlines–but not at Skybus, where he was president and COO until the carrier went bankrupt in April.
The specifics are still being worked out, says Gile:
“We are focusing on implementing a successful hedging plan and Southwest Airline’s hedging strategy is something we could look at. Fuel is one of the biggest expenses for any airline so we have to look at ways to control it in order to be able to offer the lowest fares in the region.”
Flydubai also plans to lower costs by promoting electronic booking and keeping planes in the sky as much as possible, two strategies Skybus did use.