FlyerTalk Forums - View Single Post - Delta into (and out of?) refinery business
Thread: Delta into (and out of?) refinery business
View Single Post
Old Apr 3, 2012, 10:19 pm
  #8  
azeckel
 
Join Date: Oct 2009
Location: IND
Programs: DL DM, SPG AMB, National EE
Posts: 1,301
Originally Posted by El Boocho
I don't have an MBA, but if it costs $4/gallon to buy on the open/spot market and if costs you $3.50/gal to produce fuel yourself, didn't you just save $.50/gal. Plus you can sell the excess to others at a profit. Sure I can come up with a hundred reasons why it may be a bad idea for DAL to enter this market.
Sure, the airline division saves $.50/gal, but the refining division loses $.50/gal that it otherwise would have sold on the open market. Zero Sum.
azeckel is offline  
Reply