NEW YORK, Nov 30 (Reuters) - Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) faced a cash shortfall of more than $2.5 billion in its business plan as fuel prices soared and it realized it could not sell regional carrier Comair in early 2006, a financial adviser to the airline testified on Wednesday.
The company was hoping to sell Comair, the wholly owned airline, for $550 million, but then it realized an overhaul would be needed first, said the adviser, Timothy Coleman, of Blackstone Group. He was testifying on the fifth day of a U.S. bankruptcy court hearing, where Delta is seeking to void its pilots' contract as part of $3 billion in cost cuts and revenue hikes the company says it needs to survive.
The company was hoping to sell Comair, the wholly owned airline, for $550 million, but then it realized an overhaul would be needed first, said the adviser, Timothy Coleman, of Blackstone Group. He was testifying on the fifth day of a U.S. bankruptcy court hearing, where Delta is seeking to void its pilots' contract as part of $3 billion in cost cuts and revenue hikes the company says it needs to survive.