Three Airlines Declare Bankruptcy: Delta, Northwest, Song
Burdened by heavy debt, and now hit with the increase in fuel prices following Hurricane Katrina, three US airlines have declared bankruptcy, according to AP writer Harry Webber of the Houston Chronicle.
Delta (and Delta Song) Airlines will halt operations as they go into reorganization. Northwest said they would continue to fly their normal schedule while reorganizing.
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.
This makes three major airlines to declare bankruptcy since the events of 9/11, 2001, after Elk Grove Village (Chicago)-based UAL Corp (United Airlines)'s bankruptcy threw that corporation into reorganization for the second time in three years.
Fort Worth, Texas-based AMR Corp (American Airlines) has so far managed to avoid bankruptcy by winning deep concessions from airline employees.
Please join us at BlogCritics to comment on this review.