IFALPA News

May 2, 2012 at 1:47 pm | Posted in IFALPA News articles | Leave a comment
Delta buys own refinery:

Delta Air Lines, through its subsidiary   Monroe Energy, has reached agreement with Phillips 66 to buy the Trainer   refinery situated south of Philadelphia for $150 million. Monroe will then   spend $100 million to convert the existing infrastructure “to maximise jet   fuel production”. BP will supply the crude oil to the refinery and the   resultant jet fuel will provide 80 per cent of Delta’s requirements in the   U.S.

“Acquiring the Trainer refinery is an   innovative approach to managing our largest expense,” said Delta’s CEO,   Richard Anderson, “This modest investment, the equivalent of the list price   of a new widebody aircraft, will allow Delta to reduce its fuel expense by   $300 million annually and ensure jet fuel availability in the Northeast. This   strategy is aligned with the moves we have made to build a stronger airline   for our shareholders, employees and customers.”
Delta explained in a statement that Monroe expects to close on the   acquisition “in the first half of 2012”. Completion of the changes to the   plant infrastructure and start of production is expected to begin during the   following three months, “resulting in expected 2012 fuel savings of more than   $100 million”.

ALC buys eight Dreamliners, could be   negotiating for $6 billion 737 MAX order:
        The   Air Lease Corporation (ALC) has announced that it has purchased eight Boeing   787-9s for lease to Vietnam Airlines. Deliveries, which  are scheduled   for 2017 and 2018, mark the lessor’s longest lead time for a placement in its   history.

Separately, it is rumoured that ALC is among   one of the unidentified customers on Boeing’s order book for the 737   MAX,  possibly for as many as 60 of the aircraft. If the order is   confirmed, it would be worth approximately $6 billion. Neither ALC or Boeing   has made any comment but experts believe that an announcement could be made   at July’s Farnborough Air Show.

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