This paper explores, both theoretically and empirically, the impact of granting antitrust immunity (ATI) to airline …

airline industry as an example and derives the optimal fuel cost hedging ratio as a function of firm-specific revenue and cost … capture the time-variation in the fuel cost hedging demand for a typical airline. By regressing the logarithm of Tobin's Q … market hedging demand is high. More important, we use the time-series correlation between an airline's hedging ratio and the …

's cash-flows. This paper presents a case study approach demonstrating the hedging strategy employed by an international air … nonlinear hedging instruments by providing an in-depth analysis of the firm's hedging policy and its derivative usage. Using the …-tune its current hedging portfolio by adding tailored exotic options. Specifically, we develop an annual average-price option …