Airline buys oil refinery to beat fuel costs

Delta takes advantage of US state funds to create jobs

A major airline has taken a drastic step in an effort to beat back high fuel costs. Delta Air Lines announced it would buy its own oil refinery, a move that could cut hundreds of millions of dollars off its biggest expense. Monroe Energy, a subsidiary of the airline, has made an agreement to purchase a Phillips 66 refinery in the borough of Trainer, Pennsylvania for $150 million. Some $30 million of this comes in the form of state funds provided to improve infrastructure and create jobs.
Describing the purchase as a “modest investment” similar to buying a new wide-body jet, CEO Richard Anderson, said that the refinery would cut the airline’s fuel costs by $300 million a year.
“Acquiring the Trainer refinery is an innovative approach to managing our largest expense,” he said.
USA Today


Check Also

Delta, airlines, United, American Airlines, pay, pilots, bonus, wage, profit share, usa, captains

Airline gives employees $1.1bn

Delta Airlines is being generous, and people working for its competitors are not too happy.

airBaltic, football, World Cup, fly, cities, Russia, 2018, riga, Latvia, via, transit, connection

Baltic, Nordic airlines win on punctuality

SAS sixth among major carriers, airBaltic on top again globally

Atlanta, Beijing, Heathrow, Dubai, passenger numbers, airport, ACI, world's biggest, Doha, Delhi, fastest growing, Korea, Seoul, LA

Power outage cripples world’s biggest airport

Atlanta's Hartsfield-Jackson restores power but 1,000 flights cancelled

American Airlines, flights, USA, air travel, demand, flights, A4A, spring, 2018, record, passengers, airfares, cost, price

Havana flights awarded to US airlines

Eight airlines given tentative rights to fly

DB, Dan, Cooper, FBI, wanted, 1971, skyjacking, case, closed

FBI finally closes skyjacking mystery

Strange case of DB Cooper closed 45 years later

Air France, KLM, gds, technology, travel agent, fee, airline, booking, sales

Air France deplores call for strike this week

Two cabin crew unions threaten holiday period strike