Has Until Feb. 2007 To Submit Plan... Unless There's Another Extension

Will the third time be the charm? US Bankruptcy Court Judge Adlai Hardin has given Delta Air Lines another deadline extension to file its plan to reorganize its operations, as it struggles to emerge from Chapter 11 bankruptcy protection.

The extension gives the nation's third-largest airline until February 15, 2007 to file a plan with the court, which is about three months longer than the original November 8 deadline. The extension also means Delta has until April 16, 2007 to garner approval from its creditors.

It is the third extension granted to the airline, which has stated it plans to exit bankruptcy in the first half of next year. Competing plans on Delta's reorganization -- submitted by creditors, for example -- can't be taken before the court until the extensions expire.

As Aero-News reported, Delta received permission from the court in September to terminate a pension plan for its pilots -- a significant step for the carrier to realize the cost savings it has sought since filing for Chapter 11 on September 14, 2005. Tossing the plan saved Delta approximately $1 billion a year.

The airline has also received court approval to cut retiree health benefits by $50 million annually.

FMI: www.delta.com