We think the probability of a Delta bankruptcy filing has grown, and we think investors should be mindful of Oct. 17, when more restrictive bankruptcy legislation becomes effective. That could be a key factor in a Delta deciding whether to file for Chapter 11 bankruptcy. |
We think the recent surge in fuel prices greatly increases the likelihood of a bankruptcy filing within the next two months. |
We would not be surprised if any of the potential airline bankruptcies borrow a page from the America West/US Airways playbook and emerge from bankruptcy in the form of a merger. That would be one way of achieving airline consolidation -- an objective that has eluded that industry for years, |
While it appears on the surface that the departures were personal in nature, given that the company is in a critical phase of its growth with 2006 and 2007 capacity expected to increase 14 per cent and 10 per cent respectively, we think the departures of key personnel create an uncertain outlook. |