News: Northwest and Delta enter Chapter 11 bankruptcy
Flights > News > # 565 (16/09/2005)
US major carriers Northwest and Delta are the latest airlines in the USA to join the growing list of companies seeking Chapter 11 bankruptcy protection.
Both airlines filed with the US Bankruptcy Court in New York on Wednesday, further damaging the already precarious situation US airlines face in the aftermath of events such as September 11th and Hurricane Katrina.
However, the most significant factors affecting these troubled airlines continues to be the spiralling cost of fuel, combined with overcapacity in the market. UAL Corp, parent company of United Airlines, and US Airways Group, which has recently merged with American West Airlines, are also currently in Chapter 11th proceedings.
UK passengers with bookings on any of the above airlines can currently rest assured that operations are continuing as normal, and existing tickets will continue to be honoured. The most immediate impact is likely to be a reduction in schedules on many US domestic routes, meaning that the number of connections available from some hubs (particularly Atlanta for Delta and Detroit for Northwest) may be reduced.
Chapter 11 bankruptcy allows companies opportunities to reform, and does not have the same implications as the total bankruptcy which has recently affected European airlines such as EU Jet and Volare. As most flights to the US are booked through fully bonded travel agents or online consolidators, the responsibility for ensuring passengers reach their destination ultimately lies with the agent, rather than the airline.
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Regardless of recent testing events, the bottom line is that the US suffers from far too many airlines chasing too few passengers. There simply isn't room for so many carriers, and the sooner the FAA & the Bush administration accept this, the sooner thi
