Delta filed for Chap 11 (merged thread)

[FurloughedAgain]

"wonder how many sjs sufferers have a gleam in their eye with the words, replacing routes with smaller jets....."

My thoughts exactly.

 

[michael707767]

Bye Bye pilot pensions.

cut em. I will get as much from the PBGC as I would have with my frozen pension.

 

[Otter]

from the AP

Delta Files for Chapter 11 Bankruptcy
Sep 14 5:05 PM US/Eastern

By HARRY R. WEBER
AP Business Writer


ATLANTA


Delta Air Lines Inc., hobbled by high fuel costs and heavy debt and pension obligations, filed for bankruptcy protection from its creditors Wednesday, becoming the third major carrier to enter Chapter 11 since the 2001 terrorist attacks.

The filing came as Northwest Airlines Corp., struggling with similar issues, was also expected to enter bankruptcy proceedings.

Delta's total debt is roughly $20.5 billion, and it listed $21.6 billion in assets as of June 30. The asset figure would make Delta's bankruptcy the ninth-largest in U.S. history, according to bankruptcy tracker New Generation Research Inc. The ranking could change depending on how Delta accounts for its recent $425 million sale of feeder carrier Atlantic Southeast Airlines to SkyWest Inc.

Passengers were not expected to see any immediate effects from the filing. Delta was expected to continue its normal schedule. However, as the company makes its way through bankruptcy court, some changes to Delta's operations could occur, analysts say.

Atlanta-based Delta, the nation's third-largest carrier, has lost nearly $10 billion over the last four years despite announcing it would cut up to 24,000 jobs. In September 2004, it also said it would shed its Dallas hub as part of a sweeping turnaround plan aimed at saving the airline. It has since scaled back its operations in Dallas. Delta follows into bankruptcy UAL Corp., the Elk Grove Village, Ill.- based parent of United Airlines, and Arlington, Va.-based US Airways Group, Inc., which is undergoing reorganization for the second time in three years. Fort Worth, Texas-based AMR Corp., the parent of American Airlines, the nation's biggest carrier, teetered on the verge of bankruptcy before winning deep concessions from its employees. The other so-called legacy carriers, those with a large presence in multiple regions prior to deregulation in 1978, are Eagan, Minn.-based Northwest and Houston-based Continental Airlines Inc.

 

[KigAir]

The stock will still trade (probably under symbol DALEQ) while in bankruptcy but the problem is when they emerge. The common stock will go bye-bye and they will likely issue new common. The old shares will become worthless and those shareholders will not receive any of the newly issued shares.

This is exactly what happened to KMart Stockholders when the company came out of Bankruptcy.

 

[Flechas]

wonder how many sjs sufferers have a gleam in their eye with the words, replacing routes with smaller jets.....

The only reason there is SJS is because mainline pilots agreed on it by signing a contract, maybe if all you major airline pilots would have grown a pair this wouldn't be happeneing.

 

[KigAir]

I am sorry to hear this. I hope everything works out for the employees.

 

[bafanguy]

All that's available at this point are questions. Anything presented as an "answer" to those questions will be mindless speculation.

You might want to refrain from that for the foreseeable future. Even lowcur...

 

[Spooky 1]

Hose job

So what do you think is going to happen to an erly out pilot that bolted on Aug. 1 or Sept. 1, hoping to get his lump sum before the BK took effect? It usually takes 60 days after your retirement date for the check to show up. Looks like there could be some real dissapointed pilots. Left early, and nothing to show for it, no lump sum, no job. Talk about getting screwed. On the other hand maybe they can sue to get back on the active list. Sorry just a little flame bait.

 

[Inconceivable]

Flechas speaks the truth. Funny to see guppy and -9 pilots raging at CRJ F/Os on probation when its their MEC that traded scope for widebody pay rates......

Funy sad, not funny ha-ha.

 

[kngarthur]

I think you are right. More 70 seaters are on the way. As far as larger than that, I don't know who will get them. IF we merge with NW (as speculated), their newer A319s fit that spot pretty much. I could see some E190s coming maybe, but mainline will try to get them--probably for Jetblue E190 wages....

I could see Comair or someone maybe getting DH8-400s.... If NW and DL merge, it could be really interesting..... CVG could go away, and MEM for NW. We all will take some pay cuts, then pensions go bye bye, and maybe a merger. Crazy.

Bye Bye--General Lee

Republic will fly the 190's