Back in the days we had the old railroads who built and expanded, then we turned into the modern era with air travel which we take for granted.
And I think it is a great move Delta is buying this refinery. If Delta plays its cards right this will be a significant game changer down the road.
The sad part was really they had to obtain an older refinery to upgrade it to add for more jet fuel.
I don't think may other refineries are for sale and the other airlines are going to have a hard time getting access to those or will have to build out some new facilities from scratch close to their hubs.
The refineries for natural gas and automobile and the like are all well established. The part which was lacking was the jet fuel refineries.
The USA has by far the largest amount of jet fuel produced but I do estimate that air travel is likely to pick up sharply and in fact air travel has been picking up steam.
Delta was getting access to Jetfuel from refinieries just like Trainer in the past. The only thing different is that Delta adds some of its own capital to make more jetfuel at an existing plant.
But unlike other airlines, Delta seems to have an older fleet and seems more intent on spending on small expenditures like this rather than further fleet modernization.
It is planning on modernizing its fleets, just seems like its doing it at a much slower pace than other competitors in the industry which will have more fuel efficient planes than Delta as time goes on.
737-900ER's only have 100 orders, and Dreamliners won't be arriving till 2020. So what we will see is the new 737-900ER fleet along with the Trainer facility.
If there is more profit though and buying Trainer does work, hopefully they will be able to modernize and expand the fleet and grow the business as well down the line when competitive needs require it.
Last edited by adamj023; May 1, 2012 at 7:46 pm