Bankruptcy Information





The Internet home of Delta Northwest file for bankruptcy Spike in jet fuel sparks filings putting almost half of U S airline capacity in Chapter September AM EDT By Chris Isidore CNN Money senior writer Read the documents Video High fuel prices trigger a pair of airlines to seek bankruptcy protection CNN's Chris Huntington reports NEW YORK The airline industry's five year financial crisis came to a head Wednesday evening as Delta Air Lines and Northwest Airlines two of the nation's largest carriers both filed for bankruptcy Delta the nation's No airline filed first Northwest the No carrier followed within minutes < Both cited the recent spike in jet fuel costs which have soared nearly percent since June as prime reasons for seeking protection from creditors under Chapter of federal bankruptcy laws This is a coincidence but what a coincidence said industry consultant Michael Boyd This is another Most carriers adjusted to that but now we have another that's called fuel And we have another half of a called pensions The problem is there is so much competition out there that fares get driven into the cellar he added All this does is get two carriers into position where

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

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You are in SERVICES Friday September GMT UK Airlines bankruptcy warning US airlines face tough new safety measures Losses are mounting for airlines around the world and the bankruptcy of some carriers is looking increasingly likely following the terrorist attacks on the US And the European Union said on Friday that it feared the attacks could have serious consequences for the air transport sector adding that it will monitor events to avoid a crisis in the sector What has happened will almost certainly push us over the edge Professor Rigas Doganis Share prices of airlines have fallen sharply since the attacks as brokerages and credit agencies have cut their the financial outlook for the firms And carriers themselves have begun to issue initial statements of their expected losses The International Air Transport Association has estimated that this week's flight cancellations will cost the air industry bn On top of the cost of at least a week of severe disruptions airlines are likely to face a sharp decline in passenger numbers over the next months The air industry was already under financial pressure before the attacks because of a slump in demand due to the economic downturn and high jet





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