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.

FMI: www.delta.com