Vertical integration is supposedly at thing of the past in U.S. industry, but Delta Airlines has just bought a Conoco-Phillips refinery in SE Pennsylvania, in order to secure a cheaper supply of jet fuel. This hearkens back to Henry Ford building the DT&I to access Ohio River basin coal for the highly integrated River Rouge plant in Dearborn. Business analysts have widely panned the move, saying that the move may actually make Delta more vulnerable to crude oil price fluctuations.
Links: http://www.philly.com/philly/business/20120430_Delta_Air_Lines_to_buy_Trainer_refinery_for__150_million.html?cmpid=138890144
http://www.forbes.com/sites/steveschaefer/2012/04/11/why-buying-a-refinery-could-be-a-disaster-for-delta-air-lines-even-with-jpmorgans-help/
Links: http://www.philly.com/philly/business/20120430_Delta_Air_Lines_to_buy_Trainer_refinery_for__150_million.html?cmpid=138890144
http://www.forbes.com/sites/steveschaefer/2012/04/11/why-buying-a-refinery-could-be-a-disaster-for-delta-air-lines-even-with-jpmorgans-help/
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