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Delta Files for Chapter 11 Reorganization to Address Financial Challenges
 09/14/2005

On Sept. 14, Delta took a necessary and responsible step to secure Delta’s future by voluntarily filing to reorganize under Chapter 11 of the U.S. Bankruptcy Code. “Simply put, persistent record-high fuel prices and the aggressive pricing pressures brought on by low-cost carriers (LCCs) intent on beating us outpaced and masked the significant progress we’ve made with our Transformation Plan,” said CEO Jerry Grinstein in a memo to all employees. “Despite everyone’s sacrifice and the significant improvements we are making together, unless we took this step we soon would no longer have had enough cash to run our operation, pay our bills and protect our assets.”

It is important for everyone to understand that Delta is open for business, as usual. The company will continue to provide superior customer service, and we plan to:

  • provide employee wages, healthcare coverage, vacation, sick leave and similar benefits without interruption;
  • fly its full schedules;
  • honor tickets and reservations, and make refunds and exchanges as usual;
  • maintain the company’s award-winning SkyMiles and other customer service programs; and
  • pay suppliers for goods and services received during the company’s reorganization.
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    “There have been other difficult times in Delta’s history, and the company has always turned to its people to ensure safety, to provide quality passenger service and to go the extra mile. I am confident that this will be no exception, and just like in the past, Delta people will set a new standard of excellence for the future,” said Grinstein.

     
    Site Owner: Corporate Communications
    Last Modified: November 18, 2005
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