Tankering
Airlines are flying into the New York City airports with extra fuel loaded in order to mitigate against any potential fuel shortages as a result of Superstorm Sandy.
It’s an expensive proposition in that when you carry more fuel than needed, you must carry more fuel to carry more fuel. Yes, it’s a complex equation.
That said, it probably isn’t a bad strategy for airlines over the next week or two. It mitigates airlines’ risk of delayed or cancelled flights due to fuel shortages. New York airports, however, continue to say that there is an ample supply of fuel and that they are receiving fuel from refineries.
Delta Airlines purchased their own refinery and kept it up and operating during the hurricane based on weather forecasts they received indicating a low risk of damage. Right now, Delta looks pretty smart with its refinery purchase not only for its tempering of fuel prices for Delta but also for its assured supply to New York City.
Depending on the amount of fuel carried its not necessarily an expensive proposition. Braniff used to do it all the time to take advantage of lower fuel prices at out stations. The Delta refinery purchase should be greatly lauded. Its fantastic to see a return to being self sufficient rather than sourcing everything out to someone else. Henry Ford proved over and over again that in sourcing was the only way to fly.