Delta Airlines to buy oil refinery

[elifino]

http://www.nytimes.com/2012/05/01/business/delta-air-lines-to-buy-refinery.html

Delta Air Lines said on Monday that it had agreed to buy a refinery near Philadelphia from ConocoPhillips to offset the risk of higher jet fuel prices.
Add to Portfolio

Delta Air Lines, Inc
ConocoPhillips

Go to your Portfolio »

Delta said that it would spend $150 million to acquire the Trainer refinery, which has been shuttered for six months, after receiving $30 million from the state of Pennsylvania as part of a deal to support job creation. The airline said it would spend $100 million more to refurbish the plant to increase its output of jet fuel.

Richard H. Anderson, Delta’s chief executive, said the investment was a modest one, equivalent to the list price of a new wide-body plane like a Boeing 777. The company estimated that it would reduce its annual fuel expense by $300 million, once the refinery was refurbished and operating again.

elifino

If this pans out, it could start a trend.

[cantbeserious]

1. It Won't Be Long Till The Airlines Start Their Own Exploration And Drilling Companies

eom

[Fresh_Start]

2. I like vertically integrated corporations

more jobs and more competition at least at a theoretical level.