An Airline Owning A Refinery?

[tech2101]

This has been discussed at length over at the Delta Airlines forum. There are now 2 threads dedicated to the topic. One on the debate leading up to the purchase, and now one after the purchase.

http://airlineforums.com/topic/53286-done-deal-120m-for-refinery/

http://airlineforums.com/topic/53074-dl-looking-at-buying-an-oil-refinery/

 

[MCI transplant]

<_< ------ Interesting decision anyway! --------I vaguely remember some-other Airline owning a refinery, but sold it. Or am I just getting old, and just imagining it? ----- It happens people!

 

[tech2101]

<_< ------ Interesting decision anyway! --------I vaguely remember some-other Airline owning a refinery, but sold it. Or am I just getting old, and just imagining it? ----- It happens people!

If you read all the other comments that have been discussed on the thread that is relevant, you will have your answer.

This has nothing to do with AA.

 

[Barfbag]

If you read all the other comments that have been discussed on the thread that is relevant, you will have your answer.

This has nothing to do with AA.

Wrong it has everything to do with AA.

AA tried to defray entering bankruptcy, but with US laws allowing dead companies like Delta to resurrect in court, AA followed the legacy pack into court. After an assault on labor Delta has emerged has a leader and is allowed again by US law to invest their profits into any money making scheme they choose which In turn is used against
other carriers including American.

 

[MCI transplant]

<_< ------ The man is right you know! ----If this turns out to be advantageous for Delta, it would give them one hell of an advantage over their competition!------ Which, if you care to"read all the other comments" on this forum, would include AA! And I can see other Airlines doing the same!

 

[Airlinelifer]

Wrong it has everything to do with AA.

AA tried to defray entering bankruptcy, but with US laws allowing dead companies like Delta to resurrect in court, AA followed the legacy pack into court. After an assault on labor Delta has emerged has a leader and I allowed again by US law to invest their profits into any money making scheme they choose which In turn is used against
other carriers including American.

Now that were all part of the Living Dead Legacies, maybe we need to merge into one big horrific airline.......
Dawn of the Living Dead Airlines
Zombie Air
Resurrection Airways

 

[MCI transplant]

<_< ------ Now here's a thought!----- Maybe AA could separate it's assets, from it's dept's, in BK, and emerge as "Trans World Airlines II", (TWAII) a new, and non-union, low cost, Airlines!---- After all, they do own rights to the name! 😛

 

[AA89]

<_< ------ Now here's a thought!----- Maybe AA could separate it's assets, from it's dept's, in BK, and emerge as "Trans World Airlines II", (TWAII) a new, and non-union, low cost, Airlines!---- After all, they do own rights to the name! 😛

Trans World Airlines Two.............
Very nice

 

[Barfbag]

Trans World Airlines Two.............
Very nice

Well let's not get carried away.

There are drawback in buying support companies, the Delta BOD may decide to pump more $$$ into the refinery at the cost of the airline. Such was the case in the late 70s Mr. Irving Smart then Trans World Holdings CEO which included TWA decided to spin-off TWA and keep the other subsidiaries. For years TWA's $$$ had built empire, only to get the pink slip later.

Contrary, Robert Crandall sold Sky Chefs and bought the London routes from TWAs Icahn which was better for AMR.

 

[AA89]

Well let's not get carried away.

There are drawback in buying support companies, the Delta BOD may decide to pump more $$$ into the refinery at the cost of the airline. Such was the case in the late 70s Mr. Irving Smart then Trans World Holdings CEO which included TWA decided to spin-off TWA and keep the other subsidiaries. For years TWA's $$$ had built empire, only to get the pink slip later.

Contrary, Robert Crandall sold Sky Chefs and bought the London routes from TWAs Icahn which was better for AMR.

T. rans
W. orld
A. irlines
T. wo

 

[MCI transplant]

Well let's not get carried away.

There are drawback in buying support companies, the Delta BOD may decide to pump more $$$ into the refinery at the cost of the airline. Such was the case in the late 70s Mr. Irving Smart then Trans World Holdings CEO which included TWA decided to spin-off TWA and keep the other subsidiaries. For years TWA's $$$ had built empire, only to get the pink slip later.

Contrary, Robert Crandall sold Sky Chefs and bought the London routes from TWAs Icahn which was better for AMR.

<_< ------- That my friend was the begining of TWA's downfall!!!------ But times have changed. And this may be a smart move on Delta's part.------ Time will tell!

 

[Hopeful]

<_< ------- That my friend was the begining of TWA's downfall!!!------ But times have changed. And this may be a smart move on Delta's part.------ Time will tell!

Really can't see how this would NOT be a good move on DAL's part.
I'll just wait for the experts to weigh in.

 

[MCI transplant]

<_< ----- There just happens to be a vary large refinery, that just shut down this year, on the Island of St.Croix. in the Virgin Islands. Which is a U.S. Territory, that just happens to have a "Tax Free" status! ----- Might be worth looking into!?

 

[WorldTraveler]

Wrong it has everything to do with AA.

AA tried to defray entering bankruptcy, but with US laws allowing dead companies like Delta to resurrect in court, AA followed the legacy pack into court. After an assault on labor Delta has emerged has a leader and is allowed again by US law to invest their profits into any money making scheme they choose which In turn is used against
other carriers including American.

yet, in 2003 AA attempted to do the same type of thing that the BK airlines did - AA just did it outside of BK. They obtained cost cuts in return for stock... they just didn't do as much and then didn't use the advantage they did have. Let's keep in mind that AA was the only major US airline that was not within 2 years of BK in 2005.... the fact that AA didn't use its advantage outside of BK is why they are in it today.
.
DL, UA, and US all have used the advantages they obtained in BK to gain competitive advantage... BK is not about keeping a company alive via artificial means... it is about creating a viable company from the ashes of a once-failed company because the US believes that doing so has the potential to create more value for all parties than if the whole enterprise is shut down.
.
AA is doing what other companies did because AA needs that competitive advantage. Who it will come against remains to be seen by the time AA emerges - but AA is doing what makes the most sense and what will provide the greatest benefit to all.
It will be up to AA to turn the benefits it gains in BK into strength to keep the company going for a long time, including engaging in creative strategies to maintain its advantage - the kinds of things that made AA into the global leader it became. DL, with the refinery purchase, is engaged in a creative strategy of its own that has the potential to reshape the industry in the same way that AA did with some of its achievements.

 

[AA89]

yet, in 2003 AA attempted to do the same type of thing that the BK airlines did - AA just did it outside of BK. They obtained cost cuts in return for stock... they just didn't do as much and then didn't use the advantage they did have. Let's keep in mind that AA was the only major US airline that was not within 2 years of BK in 2005.... the fact that AA didn't use its advantage outside of BK is why they are in it today.
.
DL, UA, and US all have used the advantages they obtained in BK to gain competitive advantage... BK is not about keeping a company alive via artificial means... it is about creating a viable company from the ashes of a once-failed company because the US believes that doing so has the potential to create more value for all parties than if the whole enterprise is shut down.
.
AA is doing what other companies did because AA needs that competitive advantage. Who it will come against remains to be seen by the time AA emerges - but AA is doing what makes the most sense and what will provide the greatest benefit to all.
It will be up to AA to turn the benefits it gains in BK into strength to keep the company going for a long time, including engaging in creative strategies to maintain its advantage - the kinds of things that made AA into the global leader it became. DL, with the refinery purchase, is engaged in a creative strategy of its own that has the potential to reshape the industry in the same way that AA did with some of its achievements.

.............And if Delta's plan doesn't work it will be labor's fault. What a system !!