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When Jet Blue started it realized that one of its major issues in survival would be controlling the cost of fuel. Years ago it negotiated long term fuel price agreements.  These agreements along with other wise moves has made Jet Blue one of the most profitable airlines since 2001.  When I read about this strategy a few years ago and thought it was simple but brilliant!

I believe that Jet Blue’s great idea can be taken a step forward.  Why doesn’t an airline (or maybe a group) buy one of the smaller oil companies for its production & reserves – maybe equal to twenty or more years of usage, thus locking in its price per barrel.  They could then trade, or make other arrangements, that production for fuel thus keeping their cost low and relatively fixed.

There are over 100 smaller oil companies (not all public) that could be targets.  This selection provides a wonderful choice for the first airline that would take advantage of this out-of-the-box approach.

This strategy would also have a stabilizing effect on that airline’s stock since it would be a dual play.



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