Virgin Atlantic Airways Takes Off With the Kiodex Risk Workbench
NEW YORK--May 14, 2002--Kiodex, Inc., a technology company that provides a Web-service platform for corporate risk management and financial reporting, today announced Virgin Atlantic Airways, the UK's second largest long haul airline, as the newest customer of the Kiodex Risk Workbench(SM).
"Virgin Atlantic is known as an industry leader willing to employ innovative business strategies to gain an advantage over the competition," said Raj Mahajan, Kiodex President. "As a Risk Workbench customer, Virgin is using our technology to develop advanced jet fuel hedging strategies resulting in significant cost savings on their energy expenditures."
"In order to survive in this industry, it is imperative to stay on top of the competition," said Jonathan Pardoe, Manager of Fuel Contracts and Hedging for Virgin Atlantic. "We know that Kiodex' technology will give us an advantage over other airlines not managing fuel price volatility with a robust risk management platform like the Risk Workbench."
The Kiodex Risk Workbench(SM) integrates valuation models, risk reports, independent market data, and deal capture into a single Web-based platform that gives corporations a comprehensive business process for managing energy price risk.
Scenario Analysis Capabilities Enable Sophisticated Hedging Strategies
The scenario analysis feature of the Risk Workbench is a powerful new tool for Virgin Atlantic's hedging program. "When you have a hedging program in place, you're always wondering, 'Is there a better strategy?'" added Pardoe. "With the Risk Workbench, we now have the ability to create as many hedging scenarios as we want, and analyze the resulting effects before altering our current strategy. In these times of extreme commodity price volatility, it's a critical asset."
Bringing Transparency to the Jet Fuel Market
The Risk Workbench's valuation models, which allow customers to price a trade for its fair market value before actually executing it with a broker, are particularly beneficial to Virgin Atlantic. "The Kiodex valuation models are incredibly useful," Pardoe said. "They allow us to stop executing deals without some idea of the fair value. Additionally, these tools provide us with the knowledge to negotiate better prices on our jet fuel hedges."
Setting the Industry Standard for Jet Fuel Price Risk Management
Virgin Atlantic, the second largest long haul carrier in the United Kingdom, marks another industry leader as a customer of the Risk Workbench. American Airlines , the largest US airline, also recently signed as a customer. "We're extremely proud to be able to say we're managing the risk for the largest airline in the US and the second largest long haul airline in the UK," added Mahajan. "It demonstrates that the Risk Workbench is rapidly becoming the platform that leaders in the airline industry trust to manage its jet fuel price risk."
Kiodex' customer roster also includes leaders of other industry verticals. Current Risk Workbench customers include Eastman Chemical Company , Union Pacific Railroad , and International Paper . Other industries that benefit from Kiodex' risk management services include the Food and Beverage, Oil and Gas, Manufacturing, Trucking, Construction, Mining and Metals industries.
Those interested in scheduling an online demonstration of the Kiodex Risk Workbench(SM) should email info@kiodex.com, call +1.866.KIO.INFO, or sign-up directly at www.kiodex.com.
About Virgin Atlantic Airways
Virgin Atlantic is one of the world's most acclaimed carriers and was recently named "Favorite Business Class Cabin, Transatlantic Travel" 2001 by readers of Conde Nast Traveler and "Airline of the Year" 2001 by OAG. Virgin Atlantic Airways currently serves London from nine US Gateways: Boston, New York (JFK), Newark, Washington DC (Dulles), Miami, Orlando, Las Vegas, San Francisco and Los Angeles. For more information, contact the Virgin Atlantic press office at 203-750-2570 or visit the website at www.virgin.com/atlantic.
About Kiodex
Kiodex, Inc. (www.kiodex.com) delivers a technology platform designed to transform corporate financial risk into a strategic advantage. The Kiodex platform gives corporations the services they need to make optimal hedging decisions across multiple asset classes, and to comply with stringent financial reporting requirements.
The company's flagship service, The Kiodex Risk Workbench(SM), integrates valuation models, risk reports, independent market data, and deal capture into a single application that gives corporations a comprehensive business process for managing risk. Customers to date represent a broad spectrum of corporations and industry verticals, from midstream energy companies to leaders of the Fortune 1000.