Mon, Oct 25, 2004
Report: Delta Could Enter Bankruptcy This Week
Delta Airlines could make good on
its threat to file bankruptcy as early as this week, according to
published reports. The Washington Post reports Delta executives
were meeting with bankruptcy consultants and lawyers over the
weekend, although sources told the paper that the filing could be
delayed if employees agree to $1 billion a year in compensation
cuts.
But even concessions on the part of Delta employees -- including
the airline's pilots -- may not be enough to stave off bankruptcy,
according to a source who spoke with the Post on condition of
anonymity.
"It's a crap shoot. A decision by
the pilots could postpone it or we may go ahead and do it. It's
that close," the source said.
That same source told the paper that Delta's bankruptcy could
come as early as Wednesday. While airline spokesman Anthony Black
wouldn't comment on the possibility of a bankruptcy filing, he did
acknowledge to the Post that "We're in a race for time."
Delta posted a $646 million loss in the third quarter,
remarkably higher than the $164 million it lost during the same
period last year.
Pilots have resisted Delta's attempts to negotiate a concession
package, even though they're the highest paid in the industry.
"Your union leadership fully recognizes Delta's precarious
financial situation. Much work has been done to date, but many
issues remain unresolved," said pilot spokesman Chris Renkle in a
recorded phone message to members.
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