Delta interested in buying an oil refinery?

[On Your Six]

Uh...wake up OYSter...alarm clock calling...time to wake up and go to work...

Sorry, GK was quoted in an article stating exactly that, if he couldn't find a buyer, he'd fly the 717s, or he'd park them and still pay until the leases are up. Now, maybe there are negotiations underway, but the delay might mean terms are getting better for one side. Then, the possibility of another fleet type comes in, and dashes hopes. Great drama. Have a good one.


Godspeed!


The OYSter

 

[kf4amu]

OYS,

You need to do a little more research. This old Sunoco refinery was only for heavy crude. The problem is their is no heavy crude close to Philly. It operated at a loss for years.

Can't you see, this is exactly why an airline would do it! It doesn't make sense and will lose money!

 

[On Your Six]

Can't you see, this is exactly why an airline would do it! It doesn't make sense and will lose money!

Maybe the airline should hire you and Redflyer as oil consultants?


Godspeed!


The OYSter

 

[Lampshade]

Heavy crude oil vs. light sweet crude. Big difference.

Do you even know what you're talking about?

 

[redflyer65]

Yes I do. My family has been in the industry for a long time. The Philly plant didn't have access to the oil they needed. I did have it backward...they are set up only for light sweet crude. But there is none close by.

Transporting the crude in was way too expensive. Had to tanker it in..

Here's a big red flag for you..

When other refineries aren't even interesed, there is a major, major problem with the operation. That's all you really need know.
.
RF

 

[Flash]

Sir Richard was talking last year about buying his own refinery but I haven't seen anything since. Maybe he realized that if the oil company doesn't want to do it than it is a money loser , which would make it perfect for a major US airline as they can just declare bankruptcy, I think they're all used to that trick.

 

[8sugarsugar]

Here's a big red flag for you..

When other refineries aren't even interesed, there is a major, major problem with the operation. That's all you really need know.
.
RF

Exactly why an airline might be interested in buying, because if airline executives were smart they would be working for Goldman Sachs, but they aren't.

 

[B6Busdriver]

Heavy crude oil vs. light sweet crude. Big difference.

I've seen JetA run interchangeable with diesel in large over the road trucks. FedEx did it years ago at a particular station. The only reason they stopped was the concern about failing to pay taxes that one pays at the pump.

 

[redflyer65]

True. Anything can be done...but at what cost? Especially with the higher cost of just transporting the product. Sunoco used to brag about that plant years ago but the cost finally caught up to them. The location killed them in the end.

 

[fam62c]

Airlines have a bad track record when it comes to investing in non-core businesses, even travel related businesses like hotels and rental car companies. DAL just made an investment in Pinnacle to keep those RJ's flying, that's not a rumor.