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no, DL has not recouped their direct investment in Trainer.With all the money spent to get a mothballed refinery going and upgraded I doubt they have recouped all their money invested in trainer.
Two and a half years later, “this deal is even more idiotic now than it was then,” says Ed Hirs, an energy economist and lecturer at the University of Houston. Delta has sunk $420 million of capital into the refinery, which has generated roughly $100 million of losses. Is Delta at least getting cheaper jet fuel? Yes, it expects to pay about 50 cents a gallon less this year. But that’s only because oil prices have plunged, which has nothing to do with owning a refinery.
Besides, the real test is to compare Delta’s fuel costs to other big airlines. Before the acquisition Delta was sourcing fuel for 9 cents a gallon cheaper than its peers. Its edge today: still 9 cents. Meanwhile, much of its rationale for owning a refinery has disappeared: refiners’ margins have declined, while American crude no longer sells as such a wide discount to imported barrels.
On that score it worked. It did moderate jet fuel prices for Delta–but also for every other airline flying out of New York and Philly. For that altruistic move, maybe Delta ought to pass the hat: In 2012 Delta invested $180 million to modernize the plant–which generated a $63 million loss. In 2013 it added $52 million in fresh cap ex–with a $116 million loss. Late that year company president Ed Bastian said the refinery had experienced some “teething pains.”
WorldTraveler said:maybe, just maybe, I have a PAID scribe or use an ELECTRONIC scribe?
or maybe a TEAM of scribes?
jcw said:I think what you are pointing out is on a cash flow basis it's a money pit
WorldTraveler said:so, you really don't have any evidence that DL made the wrong decision regarding the refinery but you are going to continue to beat a dead horse trying to act like you contribute something to the post?
WorldTraveler said:How from a cash flow perspective has the billions that AA has already spent or will spend just in this year on the US merger................
WorldTraveler said:you really don't have any evidence that DL made the wrong decision regarding the refinery
WorldTraveler said:You really don't know anything about the economics of Trainer but are just flapping your gums
WorldTraveler said:for someone that wants to argue about finances, you are woefully ignorant of the principles of them.