Skip to comments.Delta Air Lines Files Bankruptcy petition in New York
Posted on 09/14/2005 1:48:24 PM PDT by ElRushbo
War in Iraq the reason for high oil prices--- it's all Bush's fault!!!!
Guarantee Bush will be somehow blamed
They did it huh?
Nah... I'll just wait till the taxman rapes me.
Any idea on how this effects tickets purchased with a credit card but not used?
I suppose its nuts to think my FF miles will survive this????
And the mad rush to throw pension costs on taxpayers accelerates.
I am better than OK, my friend.
Next week, I will be fishing in Alaska.
They will all be wiped out...
As a total aside, if you decide to bag the big "D" and work for United, you might have me as a passenger ...
ATLANTA -- Delta Air Lines filed for bankruptcy-court protection today, capping a slow, nearly four-year long financial dive brought on by the crushing weight of high fuel prices, a heavy debt load and a restructuring plan that began too late to save the carrier.
The Atlanta carrier filed for protection in U.S. Bankruptcy Court in New York's Southern District. Delta joins rivals UAL Corp.'s United Airlines, which has operated in bankruptcy for nearly three years, and US Airways Group Inc., which is on its second trip into Chapter 11. Another troubled carrier, Northwest Airlines, which suffered a strike by its mechanics in August, is expected to seek bankruptcy protection as soon as today.
The bankruptcy filing by Delta sets into motion what is likely to be at least months of negotiations with bond holders and other creditors over how to restructure the airline. Delta executives believe that because Delta has already spent the past year implementing a turnaround plan, it could avoid a prolonged fight with its creditors over the company's fate.
Still up in the air is what happens to Delta's employee pensions, which are underfunded by $5.3 billion. Delta and Northwest have lobbied for proposed pension legislation now working its way through Congress. The proposed legislation would give the companies more time -- 14 years under the current version of the U.S. Senate bill -- to catch up with their required payments. However, in bankruptcy, the company's creditors could push for the company to terminate its obligations and dump them onto the federal Pension Benefit Guaranty Corp., following in the footsteps of United and U.S. Airways. Delta executives previously have said that if they win passage of the pension bill the company can continue to honor its pension obligations, even in bankruptcy.
With Delta, United and US Airways in bankruptcy, nearly half of the industry's seats are operating under Chapter 11, which in some ways adds to the pressure facing carriers still trying to compete outside of court protection. With bankruptcy, carriers can drastically cut costs, potentially putting rivals at a disadvantage.
The threat of a Delta bankruptcy filing had grown more dire as Katrina disrupted flights to the Gulf Coast and crippled oil refineries, sending jet-fuel prices soaring.
Not good at starting a new thread so maybe this will start one.
Understand Boeing is on strike, no media coverage that I can find.
Many sub-contractors are being affected.
Wonder what the general public might feel and think about this and many who might be out of work.
10 days for $8Gs, including airfair guides boats and lodging.
Good deal! I occasionally work with a fellow who used to be a bush pilot up there, flew DH Beavers (with floats, no less).
Funny they are reporting that our pensions are "up in the air", when in reality they have splatted on the ground and are dead and gone.
Nothing? Even those who are already getting a pension? They'll get nothing?
"Passengers were not expected to see any immediate effects from the filing, Delta said. It also promised to honor all tickets and sent a letter to frequent-flier customers seeking to reassure them.Their partners may also be bound to take your skymiles if Delta actually folds later. If not, I'd cash out.
"We are operating our full schedule of flights, honoring tickets and reservations as usual, and making normal refunds and exchanges," Gerald Grinstein, chief executive of Delta, said in the letter."