Delta interested in buying an oil refinery?

[On Your Six]

Yep, according to an article I just read, they are one of four interested potential buyers in the Sunoco Refinery in Philadelphia. If it happens, the airline would use it to bring down fuel costs in the NE. Lots of rumors floating around too besides the 717 rumor, like having a new contract to vote on by the end of next month, even though the current one isn't really ammendable until the end of December this year. Crazy times. I wonder what the rush is? Looks like DL had a great March too, with PRASM up 13% yoy from last year.



Godspeed!


The OYSter

 

[FlyinGuy]

Just because they own an oil refinery does not mean they can bring down fuel prices!!! It means they can refine oil and sell it...

 

[redflyer65]

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. It's a diesel refinery. Unless Delta has plans to either convert it (probably not even possible), or change their planes over to 'diesel only'. I see it as laughable.

But I'm sure the EPA would be quick to sign off on any good plan with Lisa Jackson at the helm.

 

[On Your Six]

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. It's a diesel refinery. Unless Delta has plans to either convert it (probably not even possible), or change their planes over to 'diesel only'. I see it as laughable.

But I'm sure the EPA would be quick to sign off on any good plan with Lisa Jackson at the helm.

Look it up on Google, I can't post it now for some reason. Obviously they would have a reason to buy it if it happens. I have a feeling they know more about it than you do.


The other rumor floating around is that Airbus came in with a good deal to offer low priced A319s(maybe recently parked from European BKs?) to the airline instead of your 717s. No idea if that is true or not, but if it is and it goes through, that could mean you are stuck with a plane your CEO publically stated he doesn't want. It might be expensive to off load those, and GK even said he might have to park them and still pay for them if he can't find a new buyer.


Godspeed!


The OYSter

 

[On Your Six]

Just because they own an oil refinery does not mean they can bring down fuel prices!!! It means they can refine oil and sell it...

That is not what the article stated, but I can't seem to paste it right now. It's on Google. But thanks for the oil lesson Bobby Ewing.


Godspeed!


The OYSter

 

[8sugarsugar]

Look it up on Google, I can't post it now for some reason. Obviously they would have a reason to buy it if it happens. I have a feeling they know more about it than you do.

The other rumor floating around is that Airbus came in with a good deal to offer low priced A319s to the airline instead of your 717s. No idea if that is true or not, but if it is and it goes through, that could mean you are stuck with a plane your CEO publically stated he doesn't want. It might be expensive to off load those, and GK even said he might have to park them and still pay for them if he can't find a new buyer.


Godspeed!


The OYSter

Investing in oil services sector might be a smart hedge. kudos to delta to diversify. the UAE and Emirates are a nice compliment. Fuel price goes up, UAE makes more, EK makes less, and vice versa.

Emirates is something like 25% the GDP of the UAE.

 

[The Prussian]

The other rumor floating around is that Airbus came in with a good deal to offer low priced A319s(maybe recently parked from European BKs?) to the airline instead of your 717s. No idea if that is true or not, but if it is and it goes through, that could mean you are stuck with a plane your CEO publically stated he doesn't want. It might be expensive to off load those, and GK even said he might have to park them and still pay for them if he can't find a new buyer.

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

 

[JimNtexas]

How much difference is there between diesel fuel and Jet-A?

 

[redflyer65]

How much difference is there between diesel fuel and Jet-A?

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

 

[Ky.BrownBourbn]

It operated at a loss for years.

Sounds like their airline operation!

Oh yeah, things are good now but there's always someone wanting to diversify the business! Stick to what you do best (or not!)

Later,
KBB