Bankruptcy Information





The Internet home of Northwest files for bankruptcy High fuel prices lack of union wage cuts takes No carrier into bankruptcy minutes after Delta September PM EDT By Chris Isidore CNN Money senior writer Read the documents NEW YORK Northwest Airlines hit by a spike in jet fuel prices and an inability to win wage concessions from its unions filed for bankruptcy court protection minutes after rival Delta also filed under Chapter The twin filings mean four of the nation's major airlines are operating under protection from creditors and that nearly half of the U S air capacity is running on bankrupt carriers Northwest had been flying for nearly a month with its unionized mechanics on and it said it expected to maintain its normal flight schedule in bankruptcy limiting the But some smaller cities now served exclusively or primarily by Northwest could be hurt as the airline trims its operations going forward Northwest and Delta follow No < and < Fierce airline competition that has kept fares low and now Hurricane Katrina which sent jet fuel prices soaring produced a double blow to the industry The US airline industry has changed permanently and Northwest must change with it

The Internet home of Bankruptcies The threat to your pension If more firms unload their retirement obligation on the government how strong is the safety net? September PM EDT by Steve Hargreaves CNN Money staff writer Pensions How private employers' plans took a hit and the changes being proposed is your money at risk? NEW YORK The bankruptcy of Delta Air Lines and Northwest Airlines could add billions of dollars to the government's already overburdened back up pension scheme If your company goes bust will the emergency fund still be there to pick up the tab? The fund known as the Pension Benefit Guaranty Corp already faces a billion gap in what it takes in through corporate premiums and what it has promised to pay retirees If Delta and Northwest default on their pension plans as United Airlines did in May after it went bankrupt that gap could widen by as much as billion Currently there is legislation moving through Congress that would double the premiums companies pay into this fund It receives no public tax money But the head of the Congressional Budget Office told Congress in June that the fund would need a fivefold increase if it

TRAVEL DEALS DESTINATIONS STRATEGIES FOR THE MAGAZINE SPOTLIGHTS PARTNERS All You Need to Know about Airline Bankruptcy There are things you need to know when an airline files for bankruptcy and when one goes completely bust Carol Sottili Tuesday September With major airlines making headlines by losing billions of dollars and entering bankruptcy protection passengers are justified in being a little concerned about their next flight Filing for bankruptcy doesn't mean a carrier is about to shut its doors Heck an airline could survive the process without inconveniencing a single passenger But invoking Chapter is not a good sign In the early s America West Continental Pan Am Midway and TWA all filed for bankruptcy America West and Continental are the only two still around And while TWA was sold with little disruption to travelers Midway went belly up overnight stranding customers with few options No one knows if a major carrier will cease operations anytime soon but at the very least a period of consolidation among airlines seems imminent RELATED STORIES STRATEGIES FOR AIRFARES Be aware before you buy Airlines enter Chapter to reorganize debt and to give them leverage when it comes to agreements with creditors and

Your Rights with Bankrupt Airlines On Wednesday night National Airlines abruptly ceased operations leaving stranded passengers and many other future passengers with potentially worthless tickets New legislation obliges airlines to help out if your carrier goes bankrupt Know your rights and insist on them Discussion Forum If you'd like to add your own commentary ask questions or offer suggestions please go to NEWSLETTER In addition to weekly feature columns I also send out a free weekly email newsletter that contains a wide ranging variety of travel related items and opinions on't miss out Have the newsletter emailed to you each week Simply fill in your email address The last time there was an airline bankruptcy some airlines failed to follow the obligations imposed on them by the Aviation and Transportation Security Act of Here's an explanation of their obligations and your rights in such situations The Law in Theory The Aviation and Transportation Security Act rushed into law shortly after contains an interesting provision to require other airlines to assist passengers stranded by airlines that go bankrupt Probably this was included to recognize both the increased likelihood of airlines going bankrupt after and also to impose some obligations on

AviationPlanning com The Boyd Group Inc Advisors to the Aviation Industry Since Beaver Brook Canyon Road Evergreen Colorado Facsimile The Boyd Group Advantage Airline Industry Bankruptcies Facts V Myths Cutting Through The Lore It's understandable how many folks get the wrong idea when they hear the term airline bankruptcy especially in light of the number we've seen over the past five years But some of the immediate conclusions coming from various media sectors have done nothing to really inform the public about the real nature of this situation particularly the Delta and Northwest filings Somehow several unquestioned truths have been promulgated in the wake of the DL and NW bankruptcy filings many of which have no basis in fact only in accepted lore The accepted facts often are nothing more than everybody knows opinion Yet they seem to be stated over and over with nobody daring to question them lest the questioner be burned at the stake as a heretic Let's note a couple of them WN's Profitable That Means Other Airlines Should Be Just Like Them Fact The current Southwest model is really not profitable at least not when fuel exceeds + per gallon It's a tribute to





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