Delta Air Lines Files for Bankruptcy Protection

Delta Air Lines last month announced that the company and its subsidiaries have voluntarily filed for Chapter 11 reorganization in accordance with United States law. Delta said it has taken this action as part of its ongoing efforts to address its financial challenges and become a simpler, more efficient and cost-effective airline.

Meanwhile, the airline said that it would continue normal business operations throughout the reorganization process. Delta is operating its full schedule of flights, honoring tickets and reservations as usual, and making normal refunds and exchanges.

The United States Chapter 11 process is focused on the preservation and reorganization of companies. Delta said that it expects to receive court authorization to pay most non-U.S.-based suppliers for goods and services provided both before and after the Chapter 11 filing.

“Delta is open for business and will continue regular operations today and throughout the reorganization process,” said Delta CEO Gerald Grinstein. “Our customers can continue to enjoy the convenience and choice they have come to expect from the more than 7,500 daily flights to 502 destinations in 88 countries that we and our SkyTeam partners provide worldwide.

“We are committed to our international markets and look forward to adding new routes and destinations around the world as we continue to implement our transformation plan and move Delta towards a more secure future.”

Delta said that its award-winning SkyMiles program has not been affected. Customers can continue to enjoy the opportunity to earn and redeem miles on the thousands of flights offered by SkyTeam and Delta’s vast network of global airline alliances.

Delta is the number one carrier from Greece to the U.S. with daily nonstop flights from Athens to New York’s JFK.  Delta Air Lines is the world’s second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 502 destinations in 88 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners.

Delta’s marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam carriers and other airline partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services.

Separately, Northwest Airlines has also filed for bankruptcy protection, which means that four of the industry’s seven biggest airlines are operating under bankruptcy protection, reflecting the deep competitive issues that have battered the airlines since the year 2000.

United, which is the second-biggest airline behind American, has been operating under Chapter 11 protection since December 2002. Last month, it submitted a reorganization plan and said it hoped to emerge from court protection early next year.

Meanwhile, US Airways, which sought bankruptcy protection last year for the second time in two years, expects to emerge from court protection this fall, when it plans to merge with the airline America West. Both airlines will operate under the US Airways name.