scholarly journals JET FUEL PRICE VARIATIONS AND MARKET VALUE: A FOCUS ON LOW-COST AND REGULAR AIRLINE COMPANIES

2016 ◽  
Vol 17 (6) ◽  
pp. 977-991 ◽  
Author(s):  
Barbara GAUDENZI ◽  
Alessandro BUCCIOL
Keyword(s):  
Stock Prices ◽  
Cost Model ◽  
Low Cost ◽  
Jet Fuel ◽  
Fuel Price ◽  
Explanatory Variables ◽  
Fuel Prices ◽  
Stock Pile ◽  
Time Variables ◽  
Financial Company

We analyze the relationship between dynamics to stock prices and jet fuel prices, conditional on financial and company-specific variables, in the airline sector. In particular, our contribution to the literature is in the comparison between regular and low-cost airline companies. We run a set of fixed-effect regressions where the dependent variable, the stock daily return of the airline company (observed between 2008 and 2014) is regressed over three sets of explanatory variables (financial, company-specific and time variables). While large and small companies provide similar results, we find that the company price return – among different variables – correlates only with the jet fuel return and the stock market return. Our work also suggests that there is a difference between regular and low-cost companies. We speculate that this possibly arises because low-cost companies stock-pile in a more efficient way, which depends less on current jet fuel price. Our evidence then sheds light on the efficiency of the low-cost model and may suggest to export part of its practice among regular airline companies.

Analyzing carbon neutral growth and biofuel economic impact for 2017–2025: A case study based on Spanish carriers

2018 ◽  
Vol 233 (6) ◽  
pp. 1943-1959
Author(s):  
Antonio López Lázaro ◽  
Darío Pérez-Campuzano ◽  
Arturo Benito ◽  
Gustavo Alonso
Keyword(s):  
Cost Model ◽  
Low Cost ◽  
Operating Cost ◽  
High Sensitivity ◽  
Estimation Model ◽  
Fuel Price ◽  
Continuous Increase ◽  
Fuel Prices ◽  
Traffic Growth ◽  
Carbon Neutral

Aviation CO2 emissions are growing along with traffic growth and expected technological efficiency improvements are not enough to reduce this continuous increase. International organizations are concerned and are implementing incentive rules in order to reduce them. IATA has stated a carbon neutral growth of emissions from 2020 onward within its roadmap. This paper aims to analyze suitable measures that could help to reach this target and focuses on their impact on the finances of 15 varied Spanish airlines. With these goals, an estimation model is designed in order to carry out a forecast of the 2017–2025 Spanish air market. This is comprised by three submodels: (i) the traffic model estimates the annual performance for Spanish carriers in each of their routes, (ii) the biofuel model is in charge of estimating the biofuel prices, emissions and regulations (with special attention to mandatory blending percentage), and (iii) the operating cost model estimates the carrier’s expenses structure. Data from several sources (regarding 2016 traffic statistics and forecasts of growth and fuel prices to name but two) is gathered and merged in order to feed the model. Aggregated results show that an average 3% per year increase of mandatory blending percentage should be applied for a 2020 CNG in the base scenario. Regarding the different biofuel feedstocks investigated, Camelina’s performance presents a good compromise in respect to price, emissions, and production issues. A further study on the airline’s cost structure shows that differences in the operating model (legacy, low cost, etc.) and route configurations can lead to big differences in terms of impact of biofuels introduction on the total airline costs. This could indicate that perhaps the design of distance-specific financial schemes would be desirable. In addition, high sensitivity to changes in common fuel price and traffic growth is observed.

scholarly journals Airline Fuel Hedging: Do Hedge Horizon and Contract Maturity Matter?

2016 ◽  
Author(s):  
Siew Hoon Lim ◽  
Peter A. Turner
Keyword(s):  
Jet Fuel ◽  
Price Risk ◽  
Fuel Price ◽  
Basis Risk ◽  
Fuel Prices ◽  
Futures Contract ◽  
Hedging Strategies ◽  
Financial Uncertainty ◽  
Heating Oil ◽  
Cross Hedging

Large and unpredictable swings in fuel prices create financial uncertainty to airlines. While there are the risks for going unhedged, airlines that hedge to mitigate fuel price risk face the basis risk. This paper examines whether the length of hedge horizon and distance to contract maturity affect the effectiveness of jet fuel cross hedging. Understanding the effects of hedge duration and futures contract maturity helps improve airline’s fuel hedging strategies. We find that (1) regardless of the distance to contract maturity, weekly hedge horizon has the highest effectiveness for jet fuel proxies like heating oil, Brent, WTI, and gasoil; (2) heating oil is the best jet fuel proxy for all hedge hori-zons and contract maturities; and (3) the hedge effectiveness of heating oil is higher for one-month and three-month contracts.

scholarly journals Urban Air Quality Modeling Using Low-Cost Sensor Network and Data Assimilation in the Aburrá Valley, Colombia

Atmosphere ◽  
2021 ◽  
Vol 12 (1) ◽  
pp. 91
Author(s):  
Santiago Lopez-Restrepo ◽  
Andres Yarce ◽  
Nicolás Pinel ◽  
O.L. Quintero ◽  
Arjo Segers ◽  
...  
Keyword(s):  
Air Quality ◽  
Data Assimilation ◽  
Transport Model ◽  
Cost Model ◽  
Low Cost ◽  
Model Performance ◽  
Monitoring Network ◽  
Correlation Factor ◽  
Chemical Transport Model ◽  
High Quality

The use of low air quality networks has been increasing in recent years to study urban pollution dynamics. Here we show the evaluation of the operational Aburrá Valley’s low-cost network against the official monitoring network. The results show that the PM2.5 low-cost measurements are very close to those observed by the official network. Additionally, the low-cost allows a higher spatial representation of the concentrations across the valley. We integrate low-cost observations with the chemical transport model Long Term Ozone Simulation-European Operational Smog (LOTOS-EUROS) using data assimilation. Two different configurations of the low-cost network were assimilated: using the whole low-cost network (255 sensors), and a high-quality selection using just the sensors with a correlation factor greater than 0.8 with respect to the official network (115 sensors). The official stations were also assimilated to compare the more dense low-cost network’s impact on the model performance. Both simulations assimilating the low-cost model outperform the model without assimilation and assimilating the official network. The capability to issue warnings for pollution events is also improved by assimilating the low-cost network with respect to the other simulations. Finally, the simulation using the high-quality configuration has lower error values than using the complete low-cost network, showing that it is essential to consider the quality and location and not just the total number of sensors. Our results suggest that with the current advance in low-cost sensors, it is possible to improve model performance with low-cost network data assimilation.

Fuel price increase, subsidies, overcapacity, and resource sustainability

2008 ◽  
Vol 65 (6) ◽  
pp. 832-840 ◽  
Author(s):  
Ussif Rashid Sumaila ◽  
Louise Teh ◽  
Reg Watson ◽  
Peter Tyedmers ◽  
Daniel Pauly
Keyword(s):  
Price Increase ◽  
Positive Aspect ◽  
Significant Component ◽  
Fuel Price ◽  
Fuel Prices ◽  
Resource Sustainability ◽  
Price Increases ◽  
Fishing Sector ◽  
Fuel Subsidies ◽  
Fuel Costs

Abstract Sumaila, U. R., Teh, L., Watson, R., Tyedmers, P., and Pauly, D. 2008. Fuel price increase, subsidies, overcapacity, and resource sustainability. – ICES Journal of Marine Science, 65: 832–840. Global fisheries are currently overcapitalized, resulting in overfishing in many of the world’s fisheries. Given that fuel constitutes a significant component of fishing costs, we expect recent increases in fuel prices to reduce overcapacity and overfishing. However, government fuel subsidies to the fishing sector reduce, if not completely negate, this positive aspect of increasing fuel costs. Here, we explore the theoretical basis for the expectation that the increasing fuel prices faced by fishing enterprises will reduce fishing pressure. Next, we estimate the amount of fuel subsidies to the fishing sector by governments globally to be in the range of US$4.2–8.5 billion per year. Hence, depending on how much of this subsidy existed before the recent fuel price increases, fishing enterprises, as a group, can absorb as much as this amount of increase in their fuel budget before any conservation benefits occur as a result of fuel price increases.

scholarly journals A brief review on the reaction mechanisms of CO2 hydrogenation into methanol

2020 ◽  
Vol 3 (2) ◽  
pp. 33-40
Author(s):  
Jawed Qaderi
Keyword(s):  
Catalytic Hydrogenation ◽  
Density Functional ◽  
Heterogeneous Catalysts ◽  
Catalytic Reduction ◽  
Kinetic Monte Carlo ◽  
Low Cost ◽  
Hydrogenation Of Co2 ◽  
Fuel Prices ◽  
Metal Metal ◽  
Reduction Of Co2

The catalytic reduction of CO2 to methanol is an appealing option to reduce greenhouse gas concentration as well as renewable energy production. In addition, the exhaustion of fossil fuel, increase in earth temperature and sharp increases in fuel prices are the main driving factor for exploring the synthesis of methanol by hydrogenating CO2. Many studies on the catalytic hydrogenation of CO2 to methanol were published in the literature over the last few decades. Many of the studies have presented different catalysts having high stability, higher performance, low cost, and are immediately required to promote conversion. Understanding the mechanisms involved in the conversion of CO2 is essential as the first step towards creating these catalysts. This review briefly summarizes recent theoretical developments in mechanistic studies focused on using density functional theory, kinetic Monte Carlo simulations, and microkinetics modeling. Based on these simulation techniques on different transition metals, metal/metal oxide, and other heterogeneous catalysts surfaces, mainly, three important mechanisms that have been recommended are the formate (HCOO), reverse water–gas shift (RWGS), and trans-COOH mechanisms. Recent experimental and theoretical efforts appear to demonstrate that the formate route in which the main intermediate species is H2CO* in the reaction route, is more favorable in catalytic hydrogenation of CO2 to chemical fuels in various temperature and pressure conditions.

Does hedging reduce economic exposure? Hurricanes, jet fuel prices and airlines

2013 ◽  
pp. 341-354
Author(s):  
David A. Carter ◽  
Daniel A. Rogers ◽  
Betty J. Simkins ◽  
Stephen D. Treanor
Keyword(s):  
Jet Fuel ◽  
Fuel Prices

Extending the lymphoblastoid cell line model for drug combination pharmacogenomics

2021 ◽  
Author(s):  
Adrian J Green ◽  
Benedict Anchang ◽  
Farida S Akhtari ◽  
David M Reif ◽  
Alison Motsinger-Reif
Keyword(s):  
Molecular Mechanisms ◽  
Cost Model ◽  
Low Cost ◽  
Clinical Effectiveness ◽  
Precision Oncology ◽  
Combination Drug ◽  
Human Lymphoblastoid Cell ◽  
Drug Classes ◽  
Integrated Omics ◽  
Underlying Mechanisms

Combination drug therapies have become an integral part of precision oncology, and while evidence of clinical effectiveness continues to grow, the underlying mechanisms supporting synergy are poorly understood. Immortalized human lymphoblastoid cell lines (LCLs) have been proven as a particularly useful, scalable and low-cost model in pharmacogenetics research, and are suitable for elucidating the molecular mechanisms of synergistic combination therapies. In this review, we cover the advantages of LCLs in synergy pharmacogenomics and consider recent studies providing initial evidence of the utility of LCLs in synergy research. We also discuss several opportunities for LCL-based systems to address gaps in the research through the expansion of testing regimens, assessment of new drug classes and higher-order combinations, and utilization of integrated omics technologies.

Emergency surgical obstetrics simulation training: an ex vivo low-cost model using bovine uterus and porcine bladder for haemostatic uterine brace suture techniques

2020 ◽  
Vol 7 (1) ◽  
pp. 26-30 ◽  
Author(s):  
Amy Sinclair ◽  
Mohamed Sayed Allam ◽  
Evelyn Jean Ferguson ◽  
Mohamed Khairy Mehasseb
Keyword(s):  
Postpartum Haemorrhage ◽  
Ex Vivo ◽  
Cost Model ◽  
Low Cost ◽  
Broad Ligament ◽  
Training Model ◽  
Mortality And Morbidity ◽  
Emergency Situations ◽  
Healthcare Settings

Postpartum haemorrhage remains a leading cause of maternal mortality and morbidity. While conventional obstetrics training curricula describe at length the management of postpartum haemorrhage, obstetrics trainees rarely have exposure to surgical management of postpartum haemorrhage in emergency situations due to reduced hours of training. Procedures such as the transverse or longitudinal haemostatic uterine brace sutures are recognised to be safe, simple and allow for the preservation of the uterus. Training during emergency situations is rarely practical or ideal. We describe a simple model that simulates the atonic postnatal uterus and allows trainees to practise the safe placement of the brace sutures. We use a bovine uterus model with attached broad ligament, bladder and ureters for the transverse haemostatic suture. For the longitudinal brace suture, we use a porcine bladder to simulate the uterus, with the ureters and bladder mesentery simulating the tubes and broad ligaments. The placement of the sutures can be practised with the uterus/bladder closed, or open akin to a caesarean section. Tissue dissection and feedback is almost similar to in vivo conditions. The sutures are inserted and driven using the material and correct placement used during real surgery. Our wet lab training model allows the acquisition, maintenance and enhancement of the required technical skills in a controlled environment, using inexpensive, reproducible and widely available specimens. The model has proved successful in both high and low-resource healthcare settings.

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