Delta Airlines files for bankruptcy
As has been rumored now for several weeks, Delta has finally filed for Chapter 11 bankruptcy protection, just one week after announcing it was cutting flights at its second largest hub in Cincinnati by 25%.
Delta, earlier this year abandoned its Dallas/Fort Worth hub operation and sought to protect its key focus city markets of Boston, New York, Orlando, Fort Lauderdale and Tampa as well as building a fortress around its Atlanta and Salt Lake City hubs. The strategy seems to have failed as Delta has faced intense competition from Air Tran at its largest hub in Atlanta as well as fare wars with Jet Blue, Southwest, Air Tran and Spirit in the Florida and Northeast markets which represent Delta's bread and butter routes. Delta posted a $1 billion loss last quarter, the largest quarterly loss in the history of the airline industry
Delta, earlier this year abandoned its Dallas/Fort Worth hub operation and sought to protect its key focus city markets of Boston, New York, Orlando, Fort Lauderdale and Tampa as well as building a fortress around its Atlanta and Salt Lake City hubs. The strategy seems to have failed as Delta has faced intense competition from Air Tran at its largest hub in Atlanta as well as fare wars with Jet Blue, Southwest, Air Tran and Spirit in the Florida and Northeast markets which represent Delta's bread and butter routes. Delta posted a $1 billion loss last quarter, the largest quarterly loss in the history of the airline industry
posted by Kartik at 12:02 AM
1 Comments:
Well do a feature on Delta's future and how this affects Florida based Air Tran and Spirit in the next few days.
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