NYT: Delta, Northwest may seek protection today (Wed.)

[Newsjock]

http://seattlepi.nwsource.com/business/240571_airlines14.html?dpfrom=thead

By MICHELINE MAYNARD
THE NEW YORK TIMES

Two of the nation's biggest and most troubled airlines, Northwest and Delta, appeared likely to file for bankruptcy protection as soon as today, people briefed on the airlines' plans said Tuesday. Both airlines have been hit hard by the spike in jet fuel prices this month and by relentless competition in the industry.

A bankruptcy filing by Northwest and Delta would mean that four of the seven major airlines -- the others are United and US Airways -- would be operating under court protection. Counting several smaller carriers, that would mean that half the seats available on flights in the United States were operated by bankrupt airlines, according to an estimate by Standard & Poor's Ratings Services.

... And if the experience at the other major airlines in bankruptcy is a guide, workers at Northwest and Delta can expect significant job cuts, reductions in wages and benefits and the end of traditional pension plans.

Both companies were finalizing their bankruptcy plans on Tuesday. Officials at each airline said a final decision had not been made to seek Chapter 11 protection.

more

[merwin]

1. Good to know that Bush protected the airline's bankruptcy rights

[Bozita]

2. It's a UAL thing ... Bye bye to pensions

The race to the bottom continues with this giant step.

[crispini]

3. Delta bankruptcy filing may come this week

Delta Air Lines is expected to file for bankruptcy as early as this week, according to an industry consultant who has been informed of the company's plans, The Associated Press reports. The consultant says the carrier is close to a nearly $2 billion financing agreement that would allow it to keep flying while it restructures. The airline is expected to file for Chapter 11 by Wednesday, but could postpone till Thursday while financing is finalized. Delta has waged a four-year battle to avoid bankruptcy. However, the nation's No. 3 carrier has lost about $10 billion since January 2001, struggling with high fuel costs, debt and pension payments.

http://www.usatoday.com/travel/flights/today/2005-09-13-sky-archivesept12_x.htm

[crispini]

4. MSNBC story

http://www.msnbc.msn.com/id/9310662/

(snip)
“Delta’s problem is not labor, it’s debt,” said Michael Boyd, an aviation industry consultant. “They have achieved labor cuts, and can achieve more because they have only two unions. But until they can restructure their debt, they are in big trouble.”

[Viking12]

12. Debt accumulated by underfunding pensions

NW took advantage of loopholes to avoid contributing to their pension funds and now have unfunded liabilities. Once again, the line worker that puts his/her life into their job with the expectation of a decent retirement will get screwed.

[ladylibertee]

5. They have been talking about this forever.Do it already.Sheese!

[ckramer]

6. Delta, Northwest Face Possible Bankruptcy

Wednesday September 14, 8:51 am ET

Delta and Northwest Airlines May Head to Bankruptcy Court on the Same Day After Years of Losses

Two of the nation's biggest carriers, Delta and Northwest, could head to bankruptcy court the same day after years of losses and fuel costs that have wrecked their weak finances even further after Hurricane Katrina.

link

[DS1]

7. Northwest should have been put out of business years ago

They are absolutely terrible.

[saigon68]

8. Lets Bust the UNIONS

</SARCASM>

[Bluzmann57]

9. Maybe it's sarcasm

But then again, maybe not. This is a classic Union busting tactic; declare bankruptcy, reorganize, and say, "well ge whiz, we have to ask our Union people to take a pay cut, have reduced benefits, etc." Or just say the hell with it and hire new people altogether at new(reduced) wages. I have lived through something similar to this, so I have an idea what I'm talking about.

[saigon68]

10. They will achieve, BIG savings, when the Unions are gone

[peacebuzzard]

13. This is all part of the Reich wing philosophy

and I get to see it microscopically close.
Like someone said above, quit whining and just frickin "do it, already"
Same story, different day. We know the CEO's (at NWA) want the employees to pay the fuel bill.
So, the employees who swallow the cuts and stay are possibly forced into looking for a second income.
I have polished my resume' but, after job searching, how do you choose a company that won't possibly outsource?? Big question.

[saigon68]

14. Best of Luck to you

The only jobs they can't export to India Etc are cleaning toilets right here in amerika.

[peacebuzzard]

15. I know. I unfortunately have to hold on to what I have, even though it

means severe pay cuts. Job market in the USA is very sparse and underpaid.

[daleo]

11. More pension dumping.

Now that the door has been opened to this, nobody is safe. I hope it doesn't spread to Canada.

[livefrom]

16. I saw a Delta commercial last night

"Be sure to check out the new delta.com for all your travel needs." First class commercial in prime time. I thought it was kind of a strange thing to do the day before bankruptcy and share price dropping 25%.