El Al Israel Airlines Uses SuperDerivatives for Multi-asset Risk Exposure

Israel-based international airline operator El Al has selected SD-Corp from SuperDerivatives (SD) to manage its exposures to jet fuel, currencies and interest rates. SD will provide El Al with a company exposure management platform, assets analytics, deal trading and booking capabilities, mark-to-market, accounting and risk – value-at-risk (VaR) – reports on all the assets it is exposed to.

Amir Mazover, fuel manager at El Al, said: “In order to enhance our risk management operations, we required a robust set of tools that would allow us to hedge exposures across a wide variety of assets, including a number of very illiquid OTC [over-the-counter] jet fuel products. Fluctuation in fuel prices remains one of the greatest challenges facing the airline industry today.

“In addition we needed to be able to independently value our book on a real-time basis and gain a better understanding of the risk associated with our portfolio. One of our key requirements was the ability to run a wide variety of scenario analyses in order to effectively assess the risk on our positions and develop hedging strategies. SD delivers this and more,” he added.

The company chose SD for its complete solution for managing company exposure, wide coverage of assets and derivative types, the accuracy of its independent pricing model, and its user-friendly software-as-a-service (SaaS) capabilities.


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