Jetrader - March/April 2013 - 22

JT: How do you see the ideal mix
of leased and owned aircraft in the
Delta ﬂeet?
PJ: Delta’s ﬂeet includes a mix of leased
and owned aircraft. We assess all available
ﬁnancing alternatives, including buying for
cash. We tend to favor ownership due to
our willingness to operate an aircraft for
more of its useful life.

The Trainer refinery
will provide savings
on the “crack spread”
cost of refining jet
fuel, which has
soared significantly.
JT: Globally we see a trend toward
high-quality business class products
on the one hand (Asian, Middle East
carriers) and the low cost “unbundled”
economy product on the other (LCCs).

How can traditional majors or ﬂag carriers respond to this?
PJ: We’ve invested heavily in our ﬂeet,
our airport facilities and technology in
recent years to provide a competitive
product for our business customers as
well as our customers who are more priceconscious. But our overall focus is on
providing an industry-leading airline for
business travelers, with a comprehensive
global network, a leading in-ﬂight experience, and the tools and technology that
fully meet their travel needs.
JT: Plea s e d is c uss t he recent
announcement of the Virgin Atlantic
investment/joint venture.
PJ: We recently entered into an agreement with Virgin Atlantic to acquire 49
percent of that airline’s equity and establish a trans-Atlantic joint venture between
North America and the United Kingdom.
Once it’s approved, it will greatly expand
travel options for Delta customers traveling
to the U.K., particularly for those want to
ﬂy to London Heathrow. For Virgin customers, it means access to Delta’s expansive

North American network, greatly expanding
their opportunities.
JT: What is an airline doing owning
an oil reﬁnery? How about a rig?
PJ: We’re focused on investing in
resources to help us better manage the
$12 billion we spend on jet fuel annually.
The Trainer reﬁnery, which is owned by our
Monroe Energy subsidiary, is one piece of
our comprehensive program to mitigate
that cost, which has added billions of
dollars in expenses in the last few years.
The Trainer reﬁnery will provide savings
on the “crack spread” cost of reﬁning jet
fuel, which has soared signiﬁcantly. In
addition, our robust fuel hedging program
provides additional protection against
volatility in the global oil markets, and
our fuel conservation programs help reduce
the amount of fuel burn with a variety of
initiatives that range from installing winglets on jets to make them more efﬁcient,
using just one engine to taxi jets on the
tarmac and reducing the number of small,
50-seat jets in our ﬂeet, which are the
least fuel-efﬁcient aircraft we operate.

ONVERSIONS.
OMPARISONS.
With more than 300 tailored cargo conversions
tha
– including 10 Boeing 737-300 and 737-400 –
100
we are the wor
world’s most experienced independent
aircraft conversi company. And the ﬁrst company
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you should call to spec out your next project .
cal

Call +1-813-322-9622 to speak with Mr. George Fedeanis
or visit PEMCOAir.com for additional information.

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Jetrader - March/April 2013

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