Delta and Northwest Airlines File Chapter 11

By Carol Kennedy

Published on September 16, 2005

Three of the industry's four largest carriers will now be operating under bankruptcy protection. Officials from Delta said that the filing should have no immediate impact on their three daily flights between Eugene and Salt Lake City. The filing will have an impact on the airline's ability to expand markets and services. Officials at Delta made a promise to honor tickets and a letter of reassurance was mailed to all frequent flier customers. The CEO of Delta, Gerald Grinstein, personally shook hands with employees after the filing to reassure them and let them know that the airline would continue to operate.

Northwest CEO, Doug Steenland, said that the company had been developing a plan to restructure the airline outside of bankruptcy but they were unable to handle high fuel costs. Northwest was burdened by cancellations and delays in August when mechanics went on strike to avoid layoffs and pay cuts.

Delta is the nation's largest carrier and Northwest is the fourth largest carrier.

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