Delta buys a refinery in bid to cut i...

Delta buys a refinery in bid to cut its fuel bill

There are 22 comments on the KEYC Television, Mankato, MN story from Apr 30, 2012, titled Delta buys a refinery in bid to cut its fuel bill. In it, KEYC Television, Mankato, MN reports that:

By JOSHUA FREED AP Airlines Writer Delta Air Lines is buying a refinery in a novel - and some say risky - attempt to slice $300 million a year from its escalating jet fuel bill.

Join the discussion below, or Read more at KEYC Television, Mankato, MN.

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Flight Benefits

United States

#1 Apr 30, 2012
Guess that will translate into flight benefits for all refinery workers.(:

Well for pay concessions of course!

Since: May 08

Santee CA

#2 Apr 30, 2012
Flight Benefits are overrated. I fly once a year and it is a hassle. Might stop all together. Planes too full of paying pax thanks to reduced capacity.

Since: May 08

Santee CA

#3 May 1, 2012
Back to the point. If this was such a great idea why wasn't done before? Who is supplying the fuel to the people this refinery used to feed, and how bad are they getting screwed now?
gung ho

United States

#4 May 1, 2012
I think it's a smart idea~
DFWFRED

Atlanta, GA

#5 May 2, 2012
Only time will tell on this one. Seems on the surface to be a good idea. An old refinery like this is surely to need lots of cash to get it back in EPA and OSHA compliance. Purchase price is cheap and the money budgeted for conversion isn't that much. I hope it works out. The laid off oil refiners sure do too I bet.
Hangar Rat

Saint Petersburg, FL

#6 May 2, 2012
After reading some of the analysts comments, this might not be such a good idea as it first appears. The refinery currently produces 14% jet fuel per barrel. The improvements, costing about $100 mil will increase that to 32% jet fuel. The refinery can only refine the light crude oil, which is more expensive. About 2/3 of the barrel will be products Delta can't use, like auto fuel. They will trade that, at a cost, for jet fuel. Conoco also guaranteed their crude oil cost for 3 years, after that it will certainly change. There was a reason the refinery was idled, it can't refine heavy crude like the Canada Oil sands product. Ultimately refining higher cost crude could cost more money then Delta would pay on the global market. As a Delta employee I hope it works out, but the management team over the last 20 years has been inept. Hopefully this will be different.
Toad

Atlanta, GA

#7 May 2, 2012
Prost wrote:
Back to the point. If this was such a great idea why wasn't done before? Who is supplying the fuel to the people this refinery used to feed, and how bad are they getting screwed now?
You haven't posted a 'positive' comment about anything lately. DAL is being mgmed by some brilliant folks. Making 1.5 billion in 11 when the global market was way down and dom markets are not that profitable. You crack me up.
Hangar Rat

Saint Petersburg, FL

#8 May 3, 2012
I guess my question to you Toad is if mgmt at Delta is soo good, why is the stock still worth one half of what it was 4 years ago. Why is Delta's credit rating at junk bond status? There was a reason Conoco shut down the refinery Delta bought. It wasn't because it was hugely profitable it was just the opposite. When Delta mgmt closed the maintenance hangars in 2005, it was supposed to save 3-4% in maintenace costs. The very next year maintenance costs rose 19%! I guess the idea is to spend more money, not spend less. There was an article today that 1 of the credit bureaus lowered Delta's credit rating because of the refinery purchase. Sounds like they think it might not be so wise also.
Toad

Houston, TX

#9 May 3, 2012
Hangar Rat wrote:
I guess my question to you Toad is if mgmt at Delta is soo good, why is the stock still worth one half of what it was 4 years ago. Why is Delta's credit rating at junk bond status? There was a reason Conoco shut down the refinery Delta bought. It wasn't because it was hugely profitable it was just the opposite. When Delta mgmt closed the maintenance hangars in 2005, it was supposed to save 3-4% in maintenace costs. The very next year maintenance costs rose 19%! I guess the idea is to spend more money, not spend less. There was an article today that 1 of the credit bureaus lowered Delta's credit rating because of the refinery purchase. Sounds like they think it might not be so wise also.
Your just being UNREASONABLE and spreading LIES....just like all other "unionized" labor. Delta does it right and best!

Since: Mar 12

Location hidden

#10 May 3, 2012
Toad drank the koolaid To bad Jim Jones didnt mix it for him.
Ex-NWA - not a malcontent

United States

#11 May 3, 2012
Nice use of the "liar, liar ... pants on fire" defense Toad. Now why don't you try to address some of facts he presented you with.
Toad

Loganville, GA

#12 May 3, 2012
Ex-NWA - not a malcontent wrote:
Nice use of the "liar, liar ... pants on fire" defense Toad. Now why don't you try to address some of facts he presented you with.
Because that Toad is a fake Toad posting from Houston. I post from ATL and around the world. Be careful of ur mis-directed anger.
Toad

Loganville, GA

#13 May 3, 2012
Hangar Rat wrote:
I guess my question to you Toad is if mgmt at Delta is soo good, why is the stock still worth one half of what it was 4 years ago. Why is Delta's credit rating at junk bond status? There was a reason Conoco shut down the refinery Delta bought. It wasn't because it was hugely profitable it was just the opposite. When Delta mgmt closed the maintenance hangars in 2005, it was supposed to save 3-4% in maintenace costs. The very next year maintenance costs rose 19%! I guess the idea is to spend more money, not spend less. There was an article today that 1 of the credit bureaus lowered Delta's credit rating because of the refinery purchase. Sounds like they think it might not be so wise also.
We are currently maintaining our long-term Neutral recommendation on Delta Air Lines. For the short term, the stock retains a Zacks #3 (Hold) Rank.

Read more here: http://www.sacbee.com/2012/05/03/4462814/the-...
Credit Bureaus do not 'rate' Corp. entities. There are 7 Intl Credit Agencies and none of them lowered ratings on DAL stock or performance. To assert that because the rifinery wasn't profitable enough for Conoco then it won't suit DAL needs........which are about 180 degrees different from Conocos. Not investing in a Corp because it hadn't been profitable enough is no reason ever to not venture. Think Apple........Google their history. DAL stock is NOT trading 4 times lower than it was 4 yrs ago because all of that stock was wiped out due to BK. DAL stock is on the up and for a transportation Corp in a flaggling economy to be making record profits, employee pay/benefits are up, productivity is up, morale is way up.......then I'm not getting why anyone would be proud of a US Corp doing really well. Res centers are back in the USA. I just don't understand the DAL hate unless you are someone holding a grudge......and in that case, logic and reason wouldn't apply.
Toad

Loganville, GA

#14 May 3, 2012
rice rocket 1 wrote:
Toad drank the koolaid To bad Jim Jones didnt mix it for him.
Nice, really nice and violent. U rock. Bet u and Mr Nugent are close
Toad

Houston, TX

#15 May 3, 2012
Toad wrote:
<quoted text>
Because that Toad is a fake Toad posting from Houston. I post from ATL and around the world. Be careful of ur mis-directed anger.
Actually I have a fake IP address...I can post from all over the world. Just say'in! No fake here UNION LOVING IDIOTS!
Toad

Houston, TX

#16 May 3, 2012
Toad wrote:
<quoted text>
Nice, really nice and violent. U rock. Bet u and Mr Nugent are close
Speaking of, EVERYONE there is a REALLY great female impersonator who does the most INCREDIBLE Pricess Diana, she will be doing a show in August ALL you Ramp guys come up and get your tickets from me when I am in ATL! I have them on me ALL the time! She is FAB no bias on MY part! Toodles!(air kiss!)(air kiss!)
Toad

Houston, TX

#17 May 3, 2012
Oh and my drag queen friend! S(he) works at the refinery Delta bought! He will be doing shows to benefit ANY and ALL Union bustion of ANY kind and funding in the aid of hiring under age boys for jobs and illegals....for cheaper labor! Who are we to argue! Mittens Rombey in 2012!
Toad

Houston, TX

#18 May 3, 2012
Sorry fellow airline employees I get so excited typing with one hand and watching GAY porn with the other! Mitt Romney 2012!
Toad

Loganville, GA

#19 May 3, 2012
Toad wrote:
Sorry fellow airline employees I get so excited typing with one hand and watching GAY porn with the other! Mitt Romney 2012!
AA and a commitment to an institution for a while mite be ur only hope. I for one understand you wanting to be me. But you can't. U can't even be u.
Hangar Rat

Saint Petersburg, FL

#20 May 4, 2012
I never said 1/4 the value Toad, I said 1/2. Go online and look it up yourself. I received, from Delta, shares at $21 per several years ago after bankruptcy. They're now worth $11. Ok that maybe slightly over 1/2, sorry today's stock price did go up a little for Delta. You're also right, I used the word bureau instead of agency, sorry. The facts remain that many analysts in the energy sector question the viability of purchasing a refinery. I only read these and try to determine the real story. I'm a 32 year Delta employee and have seen many questionable decisions by mgmt. No one is perfect, my only concern is the no one in upper mgmt has been held accountable for bad decisions.

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