05-10-2004, 06:45 PM
Join Date: Sep 2001
Delta Air May Seek Bankruptcy If It Can't Cut Costs
Delta Air Lines Inc., whose pilots have balked at a 30 percent pay cut, said it may be forced to seek bankruptcy protection unless it's able to reduce costs, stem losses and raise capital. |
The comment in a regulatory filing today by Atlanta-based Delta, the third-largest U.S. carrier, follows US Airways Group Inc.'s statement last week that it may need to seek bankruptcy protection again unless its unions agree to more concessions. Labor is airlines' biggest expense.
The two airlines have continued to post losses as low-fare carriers such as Southwest Airlines Co., JetBlue Airways Corp. and AirTran Holdings Inc. step up competition. Delta Chief Executive Gerald Grinstein on April 23 called a pilot pay-cut offer inadequate and said bankruptcy could ``easily be avoided.''