United Airlines Pursues On Going Deal with AltAir Fuels
United Airlines (UAL.N) announces undergoing discussions for a deal with AltAir Fuels on Tuesday. The airline firm said that they will pursue a long-term delivery deal with the low-carbon fuel maker, AltAir Fuels. United Airlines are set to buy biofuels for their flights from AltAir's Los Angeles International Airport hub.
AltAir Fuels declined to name the specific plant that will refine fuels for United Airlines, John Williams, spokesperson for AltAir told Reuters. He added that the firm will engage in a long-term fuel delivery agreement with AltAir.
The deal was said to take effect starting 2014 and will last for three years. United Airlines agreed to purchase 15 million gallons of fuel with AltAir for the three-year deal period. The area facility in Los Angeles will be AltAir's first production project for fuel refinery. A previous project was planned in Anacortes, Washington with Tesoro Corp's in 2012. Unfortunately, an explosion occurred that cancelled the deal. On the other hand, more projects are said to be added to the Los Angeles-area facility, Williams stated.
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