Delta & Northwest filed Chapter 11 today

[KimWDW]

They're citing rising fuel costs as a contributing factor.

We're taking Delta Song to WDW in Orlando. I wonder if this will affect it?

 

[zzammmi]

We're taking Independence Air, I had the same question. I know airlines have continued to operate in bankruptcy but I believe there is some sort of time limit in which they must recover (18 mos?). I also heard tell of some changes in these laws recently but I just don't know enought about it. Keeping my fingers crossed!

 

[tjevans]

Chapter 11 is a reorganization not a liquidation. The business continues to operate while it reorganizes itself to operate more financially sound. As a result, if it is an airline, some flights may get cancelled. Then again they may not.

The changes zzammmi heard about apply only to consumers, I believe, and not to businesses. They are to make it harder for individuals to discharge certain kinds of debts.

 

[civileng68]

Remember that in MANY cases passengers rarely notice the results of a Chapter 11 filing.

Most of the airlines have filed for Bankruptcy multiple times, and as long as the company shows responsible spending, the government will always assist them to keep them alive in some way (even if suggesting a merge) since the air travel system is so vital in the world today.

 

[OKW Lover]

They're citing rising fuel costs as a contributing factor.

We're taking Delta Song to WDW in Orlando. I wonder if this will affect it?

According to Delta, you will not be affected:
http://www.delta.com/about_delta/deltas_restructuring/index.html

 

[Tara]

We're taking Independence Air, I had the same question. I know airlines have continued to operate in bankruptcy but I believe there is some sort of time limit in which they must recover (18 mos?). I also heard tell of some changes in these laws recently but I just don't know enought about it. Keeping my fingers crossed!

Yes, there is generally a window that the airlines have to meet their reorg requirements and exit chapter 11 protection. However, this window can be extended -- for instance, a few weeks ago United got its 10th extension of its exit deadline.

 

[TAKitty]

I was concerend about Northwest and our December trip, but my mom is a TA and said that airlines fly during bankruptcy and sometimes for a long time. She said not to worry.

 

[chicknoodle99]

Remember that United Airlines has been in bankrupcy for around three years now and they are still running as normal as they can...I dont think we will see much changes on the consumer end...the employees will but not for the passengers!

 

[Chuck S]

I just booked Delta today. Yesterday our flights for december were $342. Today $180. I feel confident they will fly.

 

[newholidayx2]

We have Delta flights for March

 

[NJBlackBerry]

The bankruptcy laws do change in October for both consumers and businesses. Businesses will also have to exit bankruptcy in 18 months - and as someone else pointed out, United has been in Chapter 11 for 3 years. The high oil prices may have forced their hands, but these two money losers have been in trouble for some time and went into Chapter 11 before the new law takes effect.

 

[Servants of Evan]

NJBlackberry is completely correct -- the new laws which begin October 17th (?) will indeed make it much tougher for both individuals and corporations to declare and come out of bankruptcy. By declaring bankruptcy now they are "grandfathered" and can take a bit more time getting their affairs in order.
While we all knew Delta would be the fastest to file, I privately suspected NW would hang on for a few more days -- until I learned that tomorrow (Thursday) they were supposed to put something like 65 million dollars into their employee's pension accounts. Now that they have declared bankruptcy, I guess those employees will have to wait and hope with the rest of the creditors.

Servants of Evan

 

[sixbitslocum]

I'm flying Northwest next week. Their web site says nothing should change. You can read about it Northwest Bankrupcy Statement.

 

[bavaria]

Deep breath and exhale. Everything will be okay.

I was on a United flight about 20 minutes after they officially filed Chapter 11, and the only difference was that the pilot gave a very eloquent speech. In the three years since, I have amassed over 300,000 miles with them, with little negative impact. Yes, there was some consolidation of routes and schedule change, but nothing significant. Yes, the onboard free meals are gone, but there are some okay meal for purchase options (and at least you know what you are getting before you board!)

And the good news is that they are emerging from their troubles.

True, speculation is that at least one legacy carrier will disappear in the future, but most likely it will be something like the America West/US Air merger.

In Canada, at least two charter companies have gone out of business in recent years, and stranded thousands of passengers. With legacy carriers, however, they have reciprocal priveleges on other legacy carriers.

 

[CarolA]

One of the reasons both DL and NW filed NOW was that the bankruptcy rules actually do get more restrictive in October. So now... they are under older more generous rules as I understand it.

As a person who has several flights booked on DL I would not worry. As has been pointed out a bunch on this board. United has been in bankruptcy for about two years and USAir is in its SECOND bankruptcy in recent history... both of them are still flying. USAir did make several schedule changes etc, but as this was thier second filing there was more pressure on them.

You will see schedule changes on both airlines. However, a LOT of those changes will be the normal quarterly adjustments and not at all related to the bankruptcy. (Think about how many time we see XXX Airline changed my flights on this board)

 

[Brian Noble]

I've got several flights on NW (including one set to WDW in Feb 06), and I look at this as a *good* thing for the airline and eventually its customers, though a bad thing for its employees. NW needs to restructure its labor and pension costs to be viable given the current airfare market, and the unions have not been willing to do so. Expect to see both the mechanics and flight attendants agreements to be tossed out, as well as a bailout of the pension fund.

It's tough on the employees, but the days of pax routinely paying $600 for intra-timezone flights are over, even for those of us commonly on business fares.