Another Airline Augering In?

Delta this time. Wonder what'll happen with their pensions? Reuters (05.10.05):

"Delta Air Lines Inc. on Tuesday said it won't generate enough cash to meet its needs this year, raising new alarms the airline could have to file for bankruptcy in the next few months. In a quarterly filing with the Securities and Exchange Commission, Delta also said it expects a 'substantial' loss for the remainder of 2005 as it struggles with record-high fuel prices, low air fares and other cost pressures." Delta Air struggle raises bankruptcy fear

Jim Corridore of Standard & Poor pretty much thinks she's all over: "'Unless they sell at least one of their regional carriers, they will be forced to file for bankruptcy within the next six months'". Mr. Corridore continued: "'And if they did sell a regional carrier, it still wouldn't change their overall situation. It would just buy them more time out of bankruptcy court.'" Aha!! The pensions!! Knew it!! They're gonna do a United on 'em: "The Atlanta-based carrier, which has managed to narrowly avoid bankruptcy over the past year, said a need to bolster pension costs -- underfunded by $5.3 billion -- over the next three years would also worsen its cash problems." "Delta last week said it faces about $3.1 billion in pension costs between 2006 and 2008. But a bill under consideration by the U.S. Senate would stretch out employee pension payments over 25 years, and could ease the airline's liabilities."