/ Industry, News, Other / Delta buys Refinery in bid to lower fuel-jet costs

Delta buys Refinery in bid to lower fuel-jet costs

Linked In Share
Delta buys Refinery in bid to lower fuel-jet costs

Delta Air Lines Inc, the sixth-oldest operating airline by foundation date said Monday that it is buying the refinery near Philadelphia for $150 million from Phillips 66.

The world’s second-biggest airline will pay $180 million for the complex in suburban Philadelphia, according to a statement yesterday. Pennsylvania’s state government is putting up $30 million in assistance to defray the expense.

Under the deal, Atlanta-based Delta would become the first U.S. carrier to buy a refinery.
The company plans to spend a further $100 million to retrofit the plant to maximize its ability to produce jet fuel, and will enter marketing and sourcing pacts with Phillips 66 and London-based energy company BP PLC.

The Trainer refinery complex, located in Pennsylvania, produces more than 185,000 barrels a day. The acquisition also includes pipelines and transportation assets that reach Delta’s operations throughout the Northeast.

The deal for the idled 185 000 barrel per day Trainer, Pennsylvania, refinery, which has puzzled analysts since it first surfaced last month, will come as some relief to politicians and officials, who had feared thousands of lost jobs and a potential summer spike in fuel costs if the plant was shut permanently.

Delta CEO Richard Anderson said the deal marks “an innovative approach to managing our largest expense,” at “modest” expense.

Based on first-quarter earnings reports released in the last several weeks, Delta’s average cost of jet fuel per gallon of $3.11 was lower than that of rivals like bankrupt American Airlines parent AMR ($3.24), U.S. Airways ($3.27), United Continental Holdings ($3.34) and Southwest Airlines ($3.44).

by Mircea Serafim (my Google+) - Wednesday, May 2nd, 2012 - filed under Industry, News, Other. Image credit: Flickr.
Linked In Share
Related Articles
american airlines delta air lines delta air lines inc Phillips 66 refinery southwest airlines suburban philadelphia


Discuss: Delta buys Refinery in bid to lower fuel-jet costs

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Ferrari split ‘just a rumour’ – Alonso
Ferrari split ‘just a rumour’ – AlonsoOct.13 (GMM/Inautonews.com) Fernando Alonso is still the leading man of the intriguing 2014 'silly season'. Apparently on the ...
Massa slams Pirelli’s tyre choice for Brazil
Massa slams Pirelli’s tyre choice for BrazilOct.13 (GMM/Inautonews.com) Felipe Massa has criticised Pirelli's tyre choice selection for the forthcoming Brazilian grand ...
Wolff admits champion Mercedes seen as ‘bad guy’
Wolff admits champion Mercedes seen as ‘bad guy’Oct.13 (GMM/Inautonews.com) Despite having the constructors' title already in the bag, Toto Wolff has admitted Mercedes is ...
Vettel to start race from pitlane in Austin
Vettel to start race from pitlane in AustinOct.13 (GMM/Inautonews.com) World champion Sebastian Vettel, already out of contention for a fifth consecutive title in 2014, is ...
No team orders as Red Bull concedes title for Ricciardo
No team orders as Red Bull concedes title for RicciardoOct.13 (GMM/Inautonews.com) Red Bull has decided against boosting Daniel Ricciardo's slim championship hopes by making departing ...
Marussia set to run two cars in Austin
Marussia set to run two cars in AustinOct.13 (GMM/Inautonews.com) Marussia looks set to revert to a two-car operation in the wake of the Russian grand prix. After ...
Alonso says 2015 team not Mercedes-powered
Alonso says 2015 team not Mercedes-poweredOct.12 (GMM/Inautonews.com) Fernando Alonso dropped a big hint about his future after Sunday's Russian grand prix. Wild rumours ...
Kobayashi hints Caterham suffering parts shortage
Kobayashi hints Caterham suffering parts shortageOct.12 (GMM/Inautonews.com) Kamui Kobayashi threw fresh doubt on Caterham's future during the Russian grand prix. The Japanese, ...
Mercedes not backing down amid ‘unfreeze’ pressure
Mercedes not backing down amid ‘unfreeze’ pressureOct.12 (GMM/Inautonews.com) Mercedes is unlikely to back down amid pressure from F1 rivals to agree to relax the current engine ...
Verstappen with Vergne ‘makes sense’ for 2015 – Tost
Verstappen with Vergne ‘makes sense’ for 2015 – TostOct.12 (GMM/Inautonews.com) Jean-Eric Vergne is now a hot contender to keep his seat at Toro Rosso next year. The Red ...
Vettel as Ferrari teammate would be ‘nice’ – Raikkonen
Vettel as Ferrari teammate would be ‘nice’ – RaikkonenOct.12 (GMM/Inautonews.com) Kimi Raikkonen has admitted it would be "nice" if he is paired at Ferrari with Sebastian Vettel next ...
Sirotkin confident of 2015 debut
Sirotkin confident of 2015 debutOct.12 (GMM/Inautonews.com) Sergey Sirotkin is suddenly sounding confident he will make his F1 debut in 2015. The Russian teen ...
F1 to test yellow flag speed limits in Austin
F1 to test yellow flag speed limits in AustinOct.12 (GMM/Inautonews.com) F1 looks set to test new software and procedures next time out in Austin that will automatically ...
Mercedes poised to win constructors’ title
Mercedes poised to win constructors’ titleOct.12 (GMM/Inautonews.com) Mercedes is expected to wrap up the constructors' world championship in Russia later on ...
F1 told to be ‘silent’ during Russian anthem
F1 told to be ‘silent’ during Russian anthemOct.12 (GMM/Inautonews.com) Drivers and team personnel have been ordered to fall silent when the Russian anthem is played on the ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

bugatti veyron penis 1
nissan terrano anniversary edition 1
Lamborghini-Gallardo-Malaysia-Limited-Edition-crash-Malaysia 1
ford mustang europe 16
bmw i8 tuning german special customs 8
2015 Holden VF Commodore 4
2015 subaru impreza facelift 6
maserati ghibli s q4 neiman marcus 1
ferrari ff hand painted artist duaiv 1
Renault Captur Signature 1
2015 mazda mx-5 shooting brake 1
Nissan Pulsar SSS Heritage Edition 1

More automotive from inautonews
When talking about expensive passions, the options are quite limitless and they are usually fenced by your willingness to write zeros on the checkbook. In this category falls the latest offering from Neiman Marcus. If the Neiman Marcus Maserati Ghibli S Q4 seemed too much of a car for you, and you ...
read more
Inautonews Editors Section
Test Drive: Mercedes-Benz A180 CDI AT
Test Drive: Mercedes-Benz A180 CDI AT The new generation of the A-Class has been around since 2012 and its overall design is quite drastic, considering its predecessor. Now, two years ...
Test Drive: Citroen C-Elysee 1.6 HDi Exclusive
Test Drive: Citroen C-Elysee 1.6 HDi Exclusive Citroen has introduced the second generation of the C-Elysee last year. The model is smaller than the C4 and it is based on the Peugeot 301, being ...
Test Drive: BMW X4 xDrive30d
Test Drive: BMW X4 xDrive30d The newest crossover to make its way into BMW’s lineup is the X4. This is based on the X3 and it is basically a smaller version of the X6, aimed ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Australian recall roundup: New-gen Mercedes-Benz C-ClassThe new generation of the Mercedes-Benz C-Class is the subject to a recall in Australia, because of ... Recall roundup: Ram ProMaster and C/V TradesmanThe North American based automaker Chrysler Group has recently issued a recall affecting the Ram ...
Safety Section