Could it be curtains for Delta in 2006?

Several analysts taking part in the Reuters Aerospace and Defense Summit this week said it's a real possibility. One says Delta could very well sell what's left and lock the doors if it doesn't fare well in bankruptcy court during the coming year.

"That's the one to watch moving into 2006 if things do not proceed well in the bankruptcy process," said Fitch Ratings analyst Bill Warlick. "It's certainly conceivable that a carrier like Delta could face a liquidity squeeze." 

CreditSights analyst Roger King says the Atlanta-based airline has already mortgaged everything it owns -- and unlike similarly troubled Northwest Airlines, does not possess any hubs attractive to other carriers, such as NWA's European network.

"Their balance sheet is full of a lot of secured debt," said King. "Everything is liened up, including probably the pencils."

A third says, at the very least, the once-proud Delta will be a major target for a merger or acquisition in the next 12-months.

Or, it could be the pilots that kill the airline, regardless of if it's in their best interests.

"There is a chance [of a strike] because the level of frustration is so high," said Air Line Pilots Associate President Duane Woerth. "It'll be (more) an act of venting than strategy."

Delta wants to cut their pay even more, said Woerth... a move pilots say they won't stand for.

FMI: www.delta.com, www.alpa.org