Sunday, August 14, 2005

Delta - bankrupt?

Looks like our beloved traditional carrier is going to file for bankruptcy. New bankruptcy laws taking effect in October likely mean that this will be official prior to then as Delta would have more options before then.

Delta is a big reason why Atlanta has grown so much in the past couple of decades. Gone is the importance of a huge rail junction such as Terminus during the Civil War. The junction of three interstates, I-20, I-75 & I-85, was a major catalyst to the city's growth. But Delta and the Atlanta hub, really put us on the map.

Delta's not going away. The bankruptcy will allow the company to rework it's debt more and to renegotiate union contracts that seem to inhibit its ability to compete with its peers, not to mention the low cost carriers.

But who else will feel this bankruptcy? Tons of businesses here sell goods and services to the carrier. We'll have to see how big a ripple this will cause.

~~~~~~~~~~~~ UPDATE ~~~~~~~~~~~~~~~~
Mon., Aug 15, 2005

Well, it looks like Delta will be receiving a badly needed cash infusion after selling ASA (Atlantic Southeast Airlines) to SkyWest for $425M. I thought this might be the case after running into a ASA/Delta airline mechanic at my local Einstein's. He was worried that they wouldn't be "Delta" for much longer.