Delta's possible bankruptcy
 

Are there any airline industry watchers out there who would care to comment on how bad off Delta is right now? I have Song tickets to Orlando the week after Thanksgiving, and I am wondering if I should have an alternative plan in place.

Thanks for any insight you have to offer.

Not a guru by any means..But there is no doubt they will indeed "file bankruptcy"...BUT, they will not go out of business."Bankruptcy" and "liquidation" are 2 different ball games.Dont worry about it.Focus on having a great trip.

You will be fine.

If Song goes under, Delta will honor them.

Also, that is one of the busiest most moneymaking times of the year for the airlines.

Delta's rumored bankruptcy has been a rumor for months and months. The issue, as it is with most airlines right now, is what kind of rollbacks they can get from their unions on wages and pensions. The public comments by management are usually geared towards getting the union rank and file to see things their way. (Recently, United used the "stop operating" talk to help their negotiations along. Today they just filed their plan to emerge from bankruptcy.)

All that said, what it means for you as a flier is make sure you know your rights. After 9/11, rules were put in place that says other airlines must honor tickets from bankrupt carriers, though they can charge a fee.

If they do file bankruptcy, that doesn't mean they stop flying. Bankruptcy doesn't mean going out of business.

CNN is reporting that Delta has announced they are cutting 1,000 jobs at the Cincinnatti hub.They will offer transfers to those who want them.They will also sell 11 wide bodies.This all in an effort not to go into bankruptcy.

Delta will file bankruptcy before the new bankruptcy rules go into effect in Oct. The old rules will allow Delta more time to reorganize and continue operating. You should have no problem flying after Thanksgiving.

padams,
If it is inevitable that Delta will file, I don't disagree that it may be done before October.

However, I'd imagine the deciding factor is probably the ability to get far better retention packages under the end law than the new.

I work for Delta in the Finance Dept. Yes, we took a 10% paycut, the rumors are flying about going bankrupt, but DL is doing everything possible not to file. The cost of fuel is killing us and all airlines who are not hedging fuel. I suspect a bankruptcy is inevitable, but to answer your question: we have been told, if it happens, it will be business as usual the next day. Planes will take off, I still have to come to work, it will not be the shutdown you used to see 25 years ago, like Braniff. Song will fly.

I agree with kedron, but I think DAL will surely exploit the bankruptcy window which closes at month's end.
M

Thanks for all of your responses. I am still concerned with so many of the big airlines in trouble, that at least one of them will completely stop service unexpectedly. But thank you for the reassurance.

scarboroughmom, because our economy relies so heavily on transportation, doubtful one of the biggies will go under with no advance notice.