Delta restarting SEA to ANC and LAS

[BOX OFFICE]

Why would I have you on ignore, it's pure comedy reading your outlandish posts. Even the two guys who responded after me thought you were nuts and agreed with me about Airliners dot net. Ah, again you don't know what you are talking about, so enjoy ASA (Xjet)! Bye now!


Bye Bye--General Lee

This message is hidden because BOX OFFICE is on your ignore list


That function is SOOOOO worth it. FANTASTIC!


Bye Bye---General Lee

Liar liar pants on fire. You're a joke, General, give it up. You have some stones to claim I don't really work at Delta while you troll the regional board and regurgitate press releases. Your stories about your "career" simply don't check out. Get help.

 

[B727FA]

AS/SEA is pretty much with DL. AS/LAX is pretty much with AA. Nothing more to see...

 

[scoreboardII]

GL is proving to be an FI employee enciting arguments and starting threads to keep the masses enthralled.

Pure marketing genius, really.

Don't fall for it


View Post 02-26-2013, 13:33
Remove user from ignore listGeneral Lee
This message is hidden because General Lee is on your ignore list.

 

[General Lee]

Liar liar pants on fire. You're a joke, General, give it up. You have some stones to claim I don't really work at Delta while you troll the regional board and regurgitate press releases. Your stories about your "career" simply don't check out. Get help.

Stones? Classic from you. And you are always posting in ASA threads, yet you very rarely add anything of substance or current about DL. Zilch lady, nada. This is an anonymous board, so anyone can be anywhere, but maybe you should ask other supposed DL people what they think. Ask Lumberg or Googles Pisano or FDJ2. Why don't you ask me something that only mainliners know, like how long the next bid is good for? Or who the ATL LEC reps are (initials please) And what planes they fly? Do you know? Of course you don't, you fly at ASA. Bye!


Bye Bye---General Lee

 

[General Lee]

GL is proving to be an FI employee enciting arguments and starting threads to keep the masses enthralled.

Pure marketing genius, really.

Don't fall for it


View Post 02-26-2013, 13:33
Remove user from ignore listGeneral Lee
This message is hidden because General Lee is on your ignore list.

I usually start up threads that deal with the underdogs getting worked over by larger groups in an unfair manner. It hasn't been tough the last couple years. Maybe I should continue with a couple more threads? What do you think?


Bye Bye---General Lee

 

[Andy]

GL is proving to be an FI employee enciting arguments and starting threads to keep the masses enthralled.

Pure marketing genius, really.

Don't fall for it

Scoreboard, I don't know GL personally and have had more than a couple past disagreements with him. But I have seen no reason to believe that he is anything other than what he represents himself to be - a Delta pilot.

We all have different points of view. Personally, I enjoy the exchanges here. And I find that I learn more when there is tension, as people tend to bring their intellectual 'A' game when the discussion is contentious.

 

[slaquer5]

I usually start up threads that deal with the underdogs getting worked over by larger groups in an unfair manner. It hasn't been tough the last couple years. Maybe I should continue with a couple more threads? What do you think?


Bye Bye---General Lee

I have always liked how you make this board fun. You turned mean and not funny a while back. But before that, you where actually pretty funny and witty.

Same with Lear, as much as I did not like some of the stuff he put on here, I wish he was back.


As far as the best one liners I would have to give that to Ty web.

 

[General Lee]

I have always liked how you make this board fun. You turned mean and not funny a while back. But before that, you where actually pretty funny and witty.

Same with Lear, as much as I did not like some of the stuff he put on here, I wish he was back.


As far as the best one liners I would have to give that to Ty web.

Well, I try to keep it interesting, but some topics just aren't meant to be funny. I have tried to tone it down a bit lately, but I still look for the right time for a zinger....

I don't claim to be an expert at all topics in this industry, but I obviously like to give my opinions, and all retorts are welcome. I learn stuff everyday on FI, especially from guys like Andy, who I have learned knows a lot about airline hedging and the refinery business. I like that. Then there are people like Box Office who rarely bring anything of value to this board.

I still enjoy FI, and even though some people don't want me to, I still come back almost everyday to check in when I can. Again, I learn something new everyday on here.


Bye Bye---General Lee

 

[Dan Roman]

Scoreboard, I don't know GL personally and have had more than a couple past disagreements with him. But I have seen no reason to believe that he is anything other than what he represents himself to be - a Delta pilot.

We all have different points of view. Personally, I enjoy the exchanges here. And I find that I learn more when there is tension, as people tend to bring their intellectual 'A' game when the discussion is contentious.

Well said. Personally, my take is you can't judge anybody by how they sound on a web board. I've known pilots on other not anonymous boards that are quite different in person than how they sound on the web. I also know plenty of pilots with totally different perspectives than I do that I like as people.

 

[Dan Roman]

I have always liked how you make this board fun. You turned mean and not funny a while back. But before that, you where actually pretty funny and witty.

Same with Lear, as much as I did not like some of the stuff he put on here, I wish he was back.


As far as the best one liners I would have to give that to Ty web.

I think the change may have been precipitated by the large volume of SWA guys that came across with the "we rule now!, Delta sucks! ALPA sucks! etc etc etc. I called foul on some of that and got branded a SWA "hater" (not true). Just become someone has a different perspective doesn't mean they are a hater.

 

[slaquer5]

Delta sucks! ALPA sucks!.

Finally we agree on something Dan.


PS. I do not think Delta sucks.

 

[Dan Roman]

Very clever dude!

 

[slaquer5]

Very clever dude!

Thanks Dan

 

[General Lee]

More on the refinery

(Reuters) - Delta Air Lines Inc (DAL) said on Monday it expects to produce 40,000 barrels-per-day (bpd) of jet fuel at its 185,000 bpd Trainer, Pennsylvania, refinery by the end of the year, a lower rate than Delta's initial goal when it bought the refinery last year.

Delta President Edward Bastian said in a JPMorgan presentation that the 40,000 bpd output represented about 25 percent of Delta's domestic jet fuel consumption and about 22 percent of the refinery's current capacity.

The Atlanta-based airline originally said it expected to spend about $100 million to increase jet fuel production at the refinery to 52,000 bpd, or about 32 percent of capacity, while reducing gasoline production.

The refinery, owned by Delta subsidiary Monroe Energy, began making jet fuel last September and by early November was up to about 30,000 bpd, a source familiar with refinery operations told Reuters at the time.

A spokesman said the company still believes Trainer will get to 52,000 bpd of jet fuel production in the long term.

"But those initial projections were made in the early days of the startup and since then we've learned a lot about the operation and have revised our expectations for this year accordingly," the spokesman said in an emailed statement.

The refinery is expected to be operating at full capacity this week, Bastian said. It had been operating at 75 capacity for most of the first quarter because of operational issues, he said. "Yet we still expect to break even on the facility in the (first) quarter."

Delta bought the refinery last year from Phillips 66 (PSX.N) in a bid to gain more control over fuel costs, saying it expected to save about $300 million from its yearly fuel bill of $12 billion.

"There's evidence here that we're going to make this work for us. But like anything that's big and new and different, it's taken us a little bit longer to turn on than we thought," Bastian said.

Had the facility been running at full capacity in the first quarter, Bastian said Trainer would have likely produced a profit of $60 million.

He expects Trainer to turn a profit of $75 million to $100 million during the second quarter.

Delta is taking steps to make the refinery more profitable. These include shipping low-cost crude oil by rail from North Dakota's Bakken shale to replace more expensive crude from the North Sea and Africa.

Other East Coast refiners, such as PBF Energy (PBF.N), have already taken similar steps. PBF recently began receiving crude oil shipments by rail at its 182,000 bpd Delaware City, Delaware, refinery.

Delta's Trainer refinery received its first crude-by-rail shipment in February. The airline expects to begin receiving a regular supply of crude-by-rail from the Bakken region by mid-2013, according to Bastian's presentation.

Bastian said Delta is "mid-stage" in negotiating Bakken crude supply and transportation arrangements for Trainer and will make an announcement in the next 60 days on how it will proceed.

Initial Bakken crude oil volumes at the refinery will be "a bit limited" but "meaningful," Bastian said. He declined to provide an exact figure.

(Reporting by Cezary Podkul in New York and Karen Jacobs in Atlanta; editing by Gerald E. McCormick, Marguerita Choy and Matthew Lewis)



Bye Bye---General Lee

 

[General Lee]

For Andy----I know it's from Seeking Alpha....but....

How Will Delta's Oil Refinery Help Its Business?
Mar 6 2013, 12:56 | by Trefis | about: DAL
Quick Take. Seeking Alpha

Delta suffered from a $63 million loss from the Trainer refinery operations in 2012.
But it anticipates that it will achieve $300 million in jet fuel savings through the refinery in 2013.
These savings compare to the $2.2 billion operating profit that the carrier reported in 2012. Thus, these savings will significantly increase Delta’s margins in 2013.
Delta Airlines (DAL) acquired the Trainer crude oil refining complex located near Philadelphia from Phillips 66 (PSX) in June 2012 for $180 million. The carrier had hoped to address rising refining margins through the acquisition, but the refinery produced a loss of $63 million in 2012. [1] This loss was caused by Superstorm Sandy which not only damaged Trainer’s supply pipeline infrastructure but also lowered its jet fuel production by impacting production start up.

Looking ahead, in the absence of any natural calamity, what will be the impact of the Trainer refinery on Delta’s profits?

In the first quarter of 2013, the refinery will likely provide some marginal upside to the carrier’s profits as the production of jet fuel at the refinery has continued to increase. For the full year 2013, the refinery will lower Delta’s fuel expenses by around $300 million. [2] To provide context, Delta’s operating income in 2012 was a little under $2.2 billion. Thus, fuel cost savings from Trainer refinery operations will significantly expand Delta’s margins in 2013. These savings will also nearly recover the $330 million that Delta has so far invested in the Trainer facility to bring it to production. [1]

We currently have a stock price estimate of $15.65 for Delta, approximately 5% above its current market price.

See our complete analysis of Delta here

Delta aims to address rising refining margins through Trainer refinery operations

Over the past few years, jet fuel refining margins have increased, exacerbating the negative impact of higher crude oil prices on airlines. Refining margin prices have risen to a high of $45 per barrel in May 2008 before declining to $10 per barrel in 2009 and $14 per barrel in 2010 due to the financial crisis. However, they rose again to $33 per barrel in 2011 and $36 per barrel in 2012. [3] Refining margins also increased as a percentage of total fuel expenses for airlines during this period. For instance, at Alaska Airlines, refining margins increased from 13% of total fuel costs in 2009 to 25% of total fuel costs in 2012. [3] Delta is trying to address these rising refining margins in jet fuel prices through the operation of its Trainer refinery.

Potential positive impact from Trainer refinery operations in 2013

This refinery can process up to 185,000 barrels of crude oil per day. In comparison, Delta consumed approximately 328,000 barrels of jet fuel per day in 2012. [1] Currently, the carrier expects to produce around 40,000 barrels of jet fuel per day from the Trainer refinery by the end of 2013. [2] The remaining production from the refinery consists of gasoline, diesel and other refined products, which the carrier exchanges for jet fuel from Phillips 66 and BP under multi-year exchange agreements. In all, in 2013, Delta expects to save at least $2.20 per barrel of jet fuel it consumes due to savings on refining margins from the refinery operations. [2]

Additional fuel cost savings can also be achieved if Delta can source crude oil for the Trainer refinery from the Bakken oil field in North Dakota. Currently, the carrier purchases crude oil for this refinery from BP. Delta now also has flexibility in timing its jet fuel purchases in a way that it incurs lower fuel prices. The Trainer refinery has also provided the carrier with greater leverage to purchase jet fuel from the market.

Notes:

Delta’s 2012 10-K, February 13 2013
Disclosure: No positions


Redflyer should also read this.....


Bye Bye---General Lee

 

[Andy]

I already read it. I'm actually a big fan of Seeking Alpha; it is a great place to read a lot of different opinions on a subject - there are tons of people from financial professionals to average Joes that post articles there. That was one of the better written articles on the subject.

 

[jonjuan]

How Will Delta's Oil Refinery Help Its Business?
Mar 6 2013, 12:56 | by Trefis | about: DAL
Quick Take. Seeking Alpha

Delta suffered from a $63 million loss from the Trainer refinery operations in 2012.
But it anticipates that it will achieve $300 million in jet fuel savings through the refinery in 2013.
These savings compare to the $2.2 billion operating profit that the carrier reported in 2012. Thus, these savings will significantly increase Delta’s margins in 2013.
Delta Airlines (DAL) acquired the Trainer crude oil refining complex located near Philadelphia from Phillips 66 (PSX) in June 2012 for $180 million. The carrier had hoped to address rising refining margins through the acquisition, but the refinery produced a loss of $63 million in 2012. [1] This loss was caused by Superstorm Sandy which not only damaged Trainer’s supply pipeline infrastructure but also lowered its jet fuel production by impacting production start up.

Looking ahead, in the absence of any natural calamity, what will be the impact of the Trainer refinery on Delta’s profits?

In the first quarter of 2013, the refinery will likely provide some marginal upside to the carrier’s profits as the production of jet fuel at the refinery has continued to increase. For the full year 2013, the refinery will lower Delta’s fuel expenses by around $300 million. [2] To provide context, Delta’s operating income in 2012 was a little under $2.2 billion. Thus, fuel cost savings from Trainer refinery operations will significantly expand Delta’s margins in 2013. These savings will also nearly recover the $330 million that Delta has so far invested in the Trainer facility to bring it to production. [1]

We currently have a stock price estimate of $15.65 for Delta, approximately 5% above its current market price.

See our complete analysis of Delta here

Delta aims to address rising refining margins through Trainer refinery operations

Over the past few years, jet fuel refining margins have increased, exacerbating the negative impact of higher crude oil prices on airlines. Refining margin prices have risen to a high of $45 per barrel in May 2008 before declining to $10 per barrel in 2009 and $14 per barrel in 2010 due to the financial crisis. However, they rose again to $33 per barrel in 2011 and $36 per barrel in 2012. [3] Refining margins also increased as a percentage of total fuel expenses for airlines during this period. For instance, at Alaska Airlines, refining margins increased from 13% of total fuel costs in 2009 to 25% of total fuel costs in 2012. [3] Delta is trying to address these rising refining margins in jet fuel prices through the operation of its Trainer refinery.

Potential positive impact from Trainer refinery operations in 2013

This refinery can process up to 185,000 barrels of crude oil per day. In comparison, Delta consumed approximately 328,000 barrels of jet fuel per day in 2012. [1] Currently, the carrier expects to produce around 40,000 barrels of jet fuel per day from the Trainer refinery by the end of 2013. [2] The remaining production from the refinery consists of gasoline, diesel and other refined products, which the carrier exchanges for jet fuel from Phillips 66 and BP under multi-year exchange agreements. In all, in 2013, Delta expects to save at least $2.20 per barrel of jet fuel it consumes due to savings on refining margins from the refinery operations. [2]

Additional fuel cost savings can also be achieved if Delta can source crude oil for the Trainer refinery from the Bakken oil field in North Dakota. Currently, the carrier purchases crude oil for this refinery from BP. Delta now also has flexibility in timing its jet fuel purchases in a way that it incurs lower fuel prices. The Trainer refinery has also provided the carrier with greater leverage to purchase jet fuel from the market.

Notes:

Delta’s 2012 10-K, February 13 2013
Disclosure: No positions


Redflyer should also read this.....


Bye Bye---General Lee

Good thing you held out for a "major" 3% pay increase in 2014 (also in 2015, too). You must be so proud of your recent "yes" vote. You might as well buff the wax on your managements new Bentleys (on the way to pick your Mom up). While someone who was hired at SWA in 1998 (wasn't that you?) is making $60K/year more than you. Maybe your public school kids will someday work for Red's kids. That would be fantastic.

 

[bri5150]

Nice. We are on the third subject in this thread. It might be time to kill it.

 

[General Lee]

Good thing you held out for a "major" 3% pay increase in 2014 (also in 2015, too). You must be so proud of your recent "yes" vote. You might as well buff the wax on your managements new Bentleys (on the way to pick your Mom up). While someone who was hired at SWA in 1998 (wasn't that you?) is making $60K/year more than you. Maybe your public school kids will someday work for Red's kids. That would be fantastic.

Thanks Jonny. First of all, last year the DL pilots received an 8% raise (4% Jan 1st, 2012 and then another 4% July 1st from the new contract). Then, there was an additional 8.5% raise this Jan 1st. Soooooooooo, that's 16.5% from Jan 1st to Jan 1st. How you like dem apples boyeeeee! The 757/767 passes SWA 737s a year from this upcoming Jan, and the larger widebodies have already passed them. Throw in huge retirement numbers at DL compared to SWA, and Red and his kids may rent a room in my guest house. They might see you there mowing the lawn. Enjoy it Jonny! Get to work! Hahahaha. Mommmmm, the meatloaf!


Bye Bye---General Lee

 

[jonjuan]

Thanks Jonny. First of all, last year the DL pilots received an 8% raise (4% Jan 1st, 2012 and then another 4% July 1st from the new contract). Then, there was an additional 8.5% raise this Jan 1st. Soooooooooo, that's 16.5% from Jan 1st to Jan 1st. How you like dem apples boyeeeee! The 757/767 passes SWA 737s a year from this upcoming Jan, and the larger widebodies have already passed them. Throw in huge retirement numbers at DL compared to SWA, and Red and his kids may rent a room in my guest house. They might see you there mowing the lawn. Enjoy it Jonny! Get to work! Hahahaha. Mommmmm, the meatloaf!


Bye Bye---General Lee

Well it's a great thing then that many of the 757s are being replaced by, wait for it.....737s! What % of pilots will be able to hold a line on a 757 at delta versus a line on a 737 at SWA in 2015? Don't forget to take your lid off before you get in your Kia. You better believe I'll be "mowing the lawn" at your place while you're on a 9 day to Nigeria.