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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]
Look who is running Delta . Any more questions ?
Dumbest. Idea. Ever
Delta can barely run the business that they have now.
Delta can barely run the business that they have now.
You must not know how vertical integration works.
I wonder what else they could vertically integrate? A Coke bottling plant to cover the cost of drinks served on the plane? Maybe they should buy Boeing to vertically integrate the expense of their airplanes.
The blue lav juice factory!
You're just going overboard now GLF5Pilot. Keep it realistic :)
You're right Tim. A company with a negative equity value on their balance sheet should do an excellent job running an incredibly capital intensive business they know nothing about. Vertical integration will save the day!
Delta has owned an oil company called Epsilon for many years. I don't know if they kept it after the bankruptcy in '06(?). I'm not a fiance major but Delta has had about a $14Mil gross profit for the past 2 years, and $11.4M in '09. They do still have debt that they have been buying down. As an investment airlines are probably the worst. Out of the few US airlines remaining DAL and UAL are the only ones making money.
I'm not sure if buying an oil refinery that even an oil company thinks is not profitable is a smart move.
I'm not sure if buying an oil refinery that even an oil company thinks is not profitable is a smart move.