Item 8.01 Other Events On September 16, 2005, the Registrant issued a press release announcing that the U.S. Bankruptcy Court for the Southern District of New York had granted interim approval for $2.05 billion in post-petition financing commitments that the Registrant has received to help support its business during its Chapter 11 reorganization. The release also announced that the court had continued its interim approval of a series of first day motions that will facilitate the Registrant's continued normal business operations. A copy of the press release is attached hereto as exhibit 99.1
-------------------- Trading is a blast!! Posts: 4921 | From: Rhode Island | Registered: May 2005
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Delta: We're still in business Carrier must control message to reassure customers Rachel Tobin Ramos Staff Writer What does an airline tell legions of customers and frequent fliers when it files for bankruptcy? . How about: We're still open for business and don't panic. In fact, if you stick with us, maybe you'll get some extra perks.
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With Delta Air Lines Inc.'s Chapter 11 filing on Sept. 14, consumers can look to get reassuring messages from the airline that has been trying to stabilize its cabin pressure for the last few years.
In announcing the bankruptcy, Delta CEO Jerry Grinstein emphasized that normal operations will continue. "Delta is open for business as usual and will continue normal operations throughout the reorganization process. Our customers can be confident that they remain our number one priority and that their travel plans and SkyMiles are secure," he said.
Although some airline and marketing experts don't expect a huge marketing push from an airline in bankruptcy (that's not politically correct, said one expert), they do predict marketing as usual.
And eventually, the airline may go above and beyond its usual SkyMiles incentives with free ticket offers.
Delta could afford to do those things while in bankruptcy protection because it would be able to operate at a loss while it renegotiates many of its financial contracts and obligations.
Most experts believe Delta will stick to its "Good goes around" marketing campaign unveiled earlier this year, as well as its aggressive marketing push for its redesigned Web site, Delta.com.
And Delta could take cues from the playbooks of United Air Lines Inc. and US Airways Inc., two airlines that have been battling bankruptcy for most of this decade.
Both United and US Airways took out full page ads in metropolitan daily newspapers after filing for bankruptcy. The ads sought to assure customers that they would stay aloft.
United's read: "We'll treat you like our future depends on it. It does." The ad went on to explain that while things "have been tough at United," the airline ranked first among major carriers for on-time arrival performance.
-------------------- Trading is a blast!! Posts: 4921 | From: Rhode Island | Registered: May 2005
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UAIRQ is also gaining strength on the BID side! I think its because a Bankrupcy is a shorters dream! They buy short at the highest price they can get it knowing they will never have to cover! Hence 100% profit!
-------------------- Nothing moves a sub like news!!! Posts: 3346 | From: Leominster,MA,US | Registered: Jul 2003
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SAN FRANCISCO (MarketWatch) -- Airlines stocks opened Monday under renewed pressure from rising crude oil prices, pushing the Amex Airline Index 1% lower to 41.73 points. AirTran Holdings Inc. led the pack lower with a 2.1% drop to $10.83 a share. Delta Air Lines , which declared Chapter 11 bankruptcy last week, saw its shares continue to bounce back, adding 8 cents at the open to 93 cents a share. Meanwhile, October-dated crude oil futures on the New York Mercantile Exchange gained $1.10 overnight to $64.10 a barrel.
Posts: 64 | Registered: Jan 2004
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I've always been afraid to jump on stocks that announce they are filing Bankruptcy.
WHY would Delta be going up on this news?
Also - I can see US Air going up on news that they're coming out - BUT the current shareholders will get NOTHING according to PR - so WHY would you all play it and WHY is it still going up? (In .40's now) Won't it just go to nothing or go away when the merger is done?
Thanks in advance for you help with these questions,
Steve
Posts: 2793 | From: Coral Springs, FL, USA | Registered: Aug 2003
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Ya kinda odd, although they arnt really going any lower..heck they are even green for the day so far
Posts: 64 | Registered: Jan 2004
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