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Delta Won't Sell Jet Fuel On Open Market
Delta Air Lines, which took the bold step of bidding for a refinery to keep a handle on fuel costs, said on Monday it would not be selling jet fuel on the open market once the deal closes. (news.airwise.com) المزيد...
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Whether or not they sell jet fuel on the open market, it should help keep prices lower by increasing the supply, since they will purchase less fuel from other suppliers. As difficult as it is to get a new refinery built, it would be a shame to close an existing refinery.
Brad,I hope they will do like they did in the "old days",and pass on the savings?
Problem is, that refinery was NEW in the old days Jim. I think what intial read there was on it, was that it was a Phillips refinery and they were getting ready to shut it down if they didn't sell it because of the cost of upgrading. If DAL can buy it right and use it for a while without spending a lot of money on it, and have Monroe on the books as a break even sub, rather than a FOR PROFIT entity, they should do well with it, but if some board member puts pressure on Dick Anderon about a non performing entity, it will be interesting.
Just doing what SWA did to keep costs down, good move if they get it!
IIRC, SWA didn't bid on nor bought their own refinery; they hedged on the cost of fuel, which rose sharply in the early 2000s, so they were able to keep their costs down while the legacies started to charge for bags. That's what helped SWA.
As far as DAL now producing their own fuel, the worrying questions is if this starts the trend of other airlines buying their own refineries to make their own fuel. Will we have the Walmart effect here, with prices dropping instead of the refineries taking their own share of the pie (read: markup on airfare), or will DAL keep the prices the same while pocketing that markup?
As far as DAL now producing their own fuel, the worrying questions is if this starts the trend of other airlines buying their own refineries to make their own fuel. Will we have the Walmart effect here, with prices dropping instead of the refineries taking their own share of the pie (read: markup on airfare), or will DAL keep the prices the same while pocketing that markup?
And just like NWA did, they will pass Delta's profits to the "refinery" and cry poor to screw over Delta employees, and then after that when it suits the execs, they will bring those profits back to Delta to line thier pockets screwing the "Monroe" employees during a time it doesn't help Delta employees... Seen it multiple times already.. it's just another way for corporations to scam thier employees, another way to keep the corporate shell game going.
