Northwest and Delta airlines file for bankruptcy
15.09.05
Northwest Airlines, hit by high labour costs and soaring fuel prices, filed for bankruptcy protection yesterday, seeking Chapter 11 protection on the same day as its larger rival, Delta Air Lines Inc. The filings put three of the four largest US airlines in bankruptcy court.
Northwest, which has almost $17.92 billion in debt, said it would continue to fly its normal schedule and operate its frequent flyer program whilst reorganising. Its filing, made in US Bankruptcy Court in the Southern District of New York, also listed $14.35 billion in assets and $1.5 billion in cash.
Like other airlines, Northwest has been hit by meteoric increases in jet fuel prices. But the fourth-largest airline also has the highest labour costs in the industry and has been losing money at the rate of $4 million a day.
The bankruptcy filings are not expected to affect airline customers in the immediate future.
'We've been advised by both airlines it will be business as usual There will still be flights. Their tickets will still be good,' one airport said.
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