"Sell cheap fuel and profit- Delta Air Lines refining 101"--article

[N1atEcon]

could

Keep trying to spin it GL. If DAL was to sell deep fat fried turds on a stick for $5.99 you would be the first to eat one and tell us how yummy they are.

 

[General Lee]

I saw that part Gen.

The problem is you're almost 1 Billion in the hole. So even if you do realize a 100 million dollar savings per year....that's still ten years from NOW to make your first dollar. Not looking like a very good investment.

Huh? A billion in the hole? Where does it say that? It cost the same amount as buying a new 777 (stated by RA---what is that? $250 million?), there was a State credit of $30 million to get it running, and then Sandy interruptions, but that certainly doesn't equal close to $1 billion. Show me those numbers. And, most analysts seem to really like the idea, and those guys at CNBC really like it. That guy "Najarian" thinks RA is a genius. But, you and N1atEcon do not..... Oh..Kay.....



Bye Bye---General Lee

 

[General Lee]

Keep trying to spin it GL. If DAL was to sell deep fat fried turds on a stick for $5.99 you would be the first to eat one and tell us how yummy they are.

As I stated above, plenty of people like the idea, and the ones that do not probably don't really understand it. Buying the refinery could be beneficial two ways, for the refinery itself, or for the airline. Either way, it's a win, and as that Najarian guy on CNBC stated, the middleman on Delta's largest expense (gas) is GONE...

So, are you going to buy the deep fried turd? It might be at the LBB airport. Go check it out.


Bye Bye---General Lee

 

[nwaf16dude]

I saw that part Gen.

The problem is you're almost 1 Billion in the hole. So even if you do realize a 100 million dollar savings per year....that's still ten years from NOW to make your first dollar. Not looking like a very good investment.

Purchase and upgrades were about 250 million. Losses thus far around 100 mill. Hardly equal "almost a billion." Significant reduction in spot jet prices in the NE arguably attributed to trainer. Delta is driving the price down, so oil traders hate us, but "outside the oil box" thinkers think its brilliant. Jury is out. I'm not cheerleader, but I'm optimistic.

 

[waveflyer]

Why are you guys arguing about this?

I guarantee you every airline is watching this. If its a big winner, it'll get copied where it can, if it isn't- it won't. Delta shouldn't be hammered for taking the risk and seeing if it works.

 

[CFIT]

What does it tell you when an oil company sells a refinery because it wasn't making money?

Time will tell?

 

[General Lee]

What does it tell you when an oil company sells a refinery because it wasn't making money?

Time will tell?

You are obviously smarter than DL's management, and most of the CNBC analysts. You're FANTASTIC.


Bye Bye---General Lee

 

[Quack]

What does it tell you when an oil company sells a refinery because it wasn't making money?

Time will tell?

Time will tell; however, the difference between Delta and an oil company, is that an oil company is in business to make money and drive profits. Even though Delta owns the refinery, their underlying goal for the move was to reduce the cost of JetA, not to be a player in the oil industry. It's Risk vs Reward....no different when the folks at SWA out-thought the legacies and purchased huge fuel hedges that saved millions and millions of dollars for them. Time will tell, and hope for the industry's sake they get it right. Eliminating the middle men completely would help all of our airlines...

 

[jynxyjericho]

Time will tell; however, the difference between Delta and an oil company, is that an oil company is in business to make money and drive profits. Even though Delta owns the refinery, their underlying goal for the move was to reduce the cost of JetA, not to be a player in the oil industry. It's Risk vs Reward....no different when the folks at SWA out-thought the legacies and purchased huge fuel hedges that saved millions and millions of dollars for them. Time will tell, and hope for the industry's sake they get it right. Eliminating the middle men completely would help all of our airlines...

Vertical integration hu?

I don't want the wrath of Jenny Lee, but with stave off of peak oil for another decade or, does it feel like Delta is tripping over a dollar to save a penny by buying this oil refinery? Watch, oil will get so low 50 seaters will make a comeback. bleh.

 

[General Lee]

Vertical integration hu?

I don't want the wrath of Jenny Lee, but with stave off of peak oil for another decade or, does it feel like Delta is tripping over a dollar to save a penny by buying this oil refinery? Watch, oil will get so low 50 seaters will make a comeback. bleh.

Another good reason for the last contract to pass. A max number of 50 seaters allowed, 125. Even if oil prices were cut in half, only 125 allowed. (215 fewer than today)


Bye Bye---General Lee