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Thu, Jun 28, 2012

Delta Closes Refinery Deal

Carrier Hopes To Cut Annual Fuel Bill By $300 Million

Delta Airlines last month announced that it had purchased an idle oil refinery in suburban Philadelphia so that it could begin to manufacture its own jet fuel. The airline announced last Friday that it has finalized the deal, and hopes to have the facility operational by fall.

An Associated Press report relayed by USA Today indicated that the plant had been closed by its previous owner. Delta subsidiary Monroe Energy plans to re-open the plant, and hire back as many of the 400 workers laid off from the refinery as it can.

The Delaware County (PA) Daily Times reports that there are other advantages as well. The refinery will also produce gasoline and Diesel fuels, which it will be able to trade for additional jet fuel. In all, the airline projects it can reduce its annual fuel bill by $300 million.

Delta says the refinery should provide about 80 percent of its overall fuel needs in the U.S. The company reportedly spent about $12 billion to acquire the facility.

FMI: www.delta.com

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