Delta will buy the Phillips 66 Oil refinery for a sum of $150,000,000. This marks the first time a major airline carrier has purchased an oil refinery. The moves comes as Delta continues to try and decrease costs with the rising prices for fuel.
Delta has been in talks to buy a Pennsylvania oil refinery but has come to an agreement to acquire the asset. In addition to the purchase price, Delta will invest up to $100,000,000 to optimize the refining production at the facility to meet their objectives.
The Atlanta Business Chronicle reports that the refinery production will meet 80 % of Delta jet fuel needs. You can read the rest of the interesting article over at the Atlanta Business Chronicle.
Sign up to have blog posts sent directly via email, join us on Twitter and Facebook or check back with us at Points, Miles & Martinis
About The Weekly Flyer
The Weekly Flyer writes about travel from a business traveler perspective. He travels the world every week accumulating points and miles along the way.
Sign up for Email || Twitter || Facebook |
Hotel Offers || Airline Offers || Bank Offers || Cash Back Offers
Great find. We are always asking management to think outside the box. I would say this falls into that category and then some. If its managed correctly, it could provide a huge advantage to the guys in Atlanta.
I was thinking this would open up Sky Miles for gasoline redemption opportunities, but fuel would only be available at 3X the published sky miles except on Tuesdays 330 days in advance in Tulsa.
Hi WarmNuts – They are thinking outside of the box for sure.
Hi Lee Nusbaum – I imagine if the refinery was run by SkyMiles, they would likely offer the deal you mention if and only if the 330 days advance day fell on the second Tuesday of the month…in a leap year.