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Delta seeking fuel savings by purchasing ConocoPhillips Refinery
Delta Air Lines Inc. (DAL), whose daily 2011 fuel bill was $32 million, may buy a ConocoPhillips (COP) refinery to help save 10 percent on a significant portion of its fuel needs, a person familiar with the matter said. ConocoPhillips plans to shut the Trainer operation unless it can find a buyer by the end of May as tighter profit margins squeeze East Coast refineries. (www.bloomberg.com) Más...Sort type: [Top] [Newest]
Losing as much as 51% of US refining capacity concerns me far more than what Delta pays for Jet Fuel..I can choose not to fly. To operate my business I must use gas or diesel.Who cares about the damned air carriers. We'll be paying five bucks for gas.
Great1 They love to fly, and it shows.
Great Idea! At least someone is thinking about how to manage costs. This could be a huge win for Delta.
And come on guys you really thnk Delta spends 32 million a day in Coke!!!! Wake up and dont act so childish.
And come on guys you really thnk Delta spends 32 million a day in Coke!!!! Wake up and dont act so childish.
Interesting concept. Hope it works.
You're probably already aware of this, but there's a remarkable precedent for vertical integration in the airline business. From 1929 to 1934, United Aircraft and Transport Corporation was a holding company for Boeing, Pratt & Whitney, the predecessor to United Airlines and other aviation-related firms: http://en.wikipedia.org/wiki/United_Aircraft_and_Transport_Corporation. Also, see the Feb 1,1929 entry here: http://www.boeing.com/history/chronology/chron03.html
Owning a refinery is one portion of the business oil companies would love to have another party run for them. Iraq has it right, they pump the oil, send it out for processing and bring back only the parts they need.
I thought that owning a gas station would be a cool way to save money on fuel. I found out that I was expected to make money in the quickie mart, and Arco would sell me the gas at the price on the pump.
If Delta wants to save money on fuel, they should own the wells and sell the crude. For the amount of fuel they use, owning the wells could be a fruitful business. Owning a refinery would be like owning an aging aircraft, it would cost more than it is worth.
I thought that owning a gas station would be a cool way to save money on fuel. I found out that I was expected to make money in the quickie mart, and Arco would sell me the gas at the price on the pump.
If Delta wants to save money on fuel, they should own the wells and sell the crude. For the amount of fuel they use, owning the wells could be a fruitful business. Owning a refinery would be like owning an aging aircraft, it would cost more than it is worth.