Delta To File Bankruptcy?

[cincygreg]

DELTA STORY


Looks like restructuring is the course of action.

[gae]

I really haven't been following the story closely, but it seems that they've been saying the same thing for years.

So, I want to know what did Bush know and when did he know it?

[LanDroid]

They'd get more revenue if they lowered their fares at CVG a tad, fewer people driving to Dayton, Columbus, Indianapolis, and Louisville to save big bux... [img]graemlins/plane.gif[/img]

[cincygreg]

That is true about the difference in fares.

This being a hub, they could increase their volume of passengers and lower the cost per flight by a few reductions in fares.

I'm sure they need to do more than that, as evidnenced in the article, but it's a start.

[jumper69]

If Delta files, I hope they cut Comair loose. I mean, we're actually MAKING money.

As for fare's, I agree, they're a tad high in CVG but you're paying mostly for direct flights.

If you want to blame high fares on something, blame rising fuel costs. We're actually carrying more passengers than pre-9/11 but costs are killing the majors. Fuel and where Delta is concerned, pilot wages.

Bankruptcy will hurt Delta as it does anyone who files, but it will also let them void the existing pilot contract and force a renegotiation more along the lines of what other major carrier pilots are making.

I predict that within 5-7 years, you will no longer have the three major carriers you have today. They will have been replaced, either by a national flag carrier or several smaller existing carriers (i.e. Jet Blue, Southwest).

The problem, however, then becomes, how are these smaller carriers going to service the markets that the majors once did without becoming major carriers themselves and subjecting themselves to the same problems we face today???

Delta's credit rating does not allow them to hedge fuel contracts. Southwest and, I believe, Jet Blue are paying for fuel at a cost of $24 per barrel. ALL of the other carriers are paying market price. How can they possibly compete??

Unless you get fuel costs under control first, then labor costs, you ain't seen nuttin yet!!