Delta Troubles... Anyone concerned ? ?

[wannacruise655]

Anyone concerned about the financial problems Delta is having?

 

My DH is thinking maybe we should be using our FF miles now, he's has heard that when an airline has financial problem the reward programs are the first to go.

 

 

Don't get me wrong I'll take ANY excuse to take a trip.

 

Any thoughts ? ? ? ?

[rkacruiser]

I was booked on US Airways for a November flight. When I expressed my concern about their financial conditons, my Travel Agent said, "If George W. Bush has to fly the plane, they won't go belly-up."

 

I kind of feel the same about Delta. But, that said, I do have a friend who has earned many, many frequent flier miles on American Airlines and he is using them up, just in case they end up in bankruptcy.

[CruisinMatt]

Have there been recent developments??? I have two Delta flights booked, one paid, one with FF miles....... :o

[rkacruiser]

Yes, there has been.

 

In-flight service is being reduced and they are looking at selling some of their connecting airlines, possibly.

[parody]

Have there been recent developments???

 

There have been many recent developments, one (http://www.newratings.com/analyst_news/article_728684.html)

said on March 11: In a filing with the Securities & Exchange Board (SEB), the company [Delta] said, "We believe that we will record a substantial net loss in 2005 and that our cash flows from operations will not be sufficient to meet all of our liquidity needs for that period." They have been making operational changes; time will tell how they did.

[DanJ]

I'd be more concerned about USAirways surviving than Delta at this point, but that's not to say that Delta is a sure thing. I wouldn't be concerned though about them getting rid of the reward program in some sort of last-ditched effort to save the airline. Any legacy carrier like them that gets rid of their reward program would be sealing their fate, as miles/points are what keep many people flying them.

[MamaParrotHead]

someone please tell me I don't have to worry about my flights the end of May this year. :o

[wannacruise655]

I'M not worried about upcoming flights... I'm concerned about losing the use of my FF miles in the future. ML

[Italy52]

I'M not worried about upcoming flights... I'm concerned about losing the use of my FF miles in the future. ML

 

I hear ya, we have about 275,000 FF miles hanging in the balance if Delta does take a nose dive.

[hdawson]

Delta should stay out of bankruptcy thru Oct 2005. Then it's anyone's guess.

Their debt load is now 25 BILLION and they don't have the revenue to service it as it stands. Even under Chapter 11 they will probably continue flying for a year or two.

 

USAir is a different story. Second time in Chap 11 in three years and it doesn't look good. I read today that they have a company quitely collecting informal bids on their assets in anticipation of liquidation. AirTran has already announced that they will begin servicing Charlotte, USAir's major hub in May.

At present USAir has had no competition at Charlotte from Low Cost Carriers.

Remember, the first news of liquidation will be in the newspaper and TV news in the morning stating that XYZ Airline has ceased operation and the assets have been seized by the creditors. There is no warning given. June seems to be the magic month, but I wouldn't count on it. It could be earlier.