Delta Bankruptcy????

[shaqangel]

i got 2 phone calls this morning from friends saying that Delta was filing bankruptcy. i havent kept up with this but does anyone know whats going on?

i have skymiles - how do i redeem them now (are they going to be forfeited or are they transferable?)

thanks ladies!!

[Jazz]

I don't think it's confirmed yet, but it is somewhat expected that Delta is likely to file Chapter 11 (bankruptcy protection) soon. I live in one of their smaller hub cities, and the rumors have been on the evening news a few times over the last week (they were struggling already, and the jump in fuel prices have really hurt them).

Anyhow, filing for bankruptcy does not automatically equal going out of business (United has been in Chapter 11 for a year or longer now). It gives them protection to sort out their financial problems. So, you probably don't need to rush to cash in your skymiles, though it's not a bad idea to think about using them if you have a trip where it makes sense.

[HeatherFL]

I just read they went ahead and filed along with Northwest. I am also a Medallion member of Delta's Skymiles Program, but I am not too worried since these things take time. I don't think they'll go out of business, but sometimes other airlines they are affiliated with take Delta Miles (I know I did a ticket to London with Delta Miles, but flights on Continental.)

I'll be keeping an eye on it.

H.

[MaineBelle]

US Airways filed for bankruptcy about a year ago, I travel with them often, and nothing changed with them on my end. I am still able to earn and redeem miles.

[tlew12778]

I just got this from Delta:

AS ALWAYS, DELTA AT YOUR SERVICE

Dear Ms. Lew,

As you may know, Delta Air Lines filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code. We have taken this action as part of our ongoing efforts to make Delta a simpler, more efficient and
cost-effective airline. On behalf of the tens of thousands of Delta employees worldwide who look forward to welcoming you onboard every day, I want to assure you Delta is open for business as usual:

Your travel plans are secure -- We are operating our full schedule of flights, honoring tickets and reservations as usual, and making normal refunds and exchanges. You can count on the convenience and choice you've come to expect from the more than 7,500 daily flights to 502 destinations in 88 countries that we, along with our SkyTeam(R) and codeshare partners, provide worldwide.

Your SkyMiles(R) are secure -- The award-winning SkyMiles program has not been affected, and you can continue to enjoy the program's
benefits--including Delta Crown Room Clubs, double miles on qualifying purchases with the Delta SkyMiles Credit Card from American Express(R), and the opportunity to earn and redeem miles on the thousands of flights offered by SkyTeam and our vast network of global airline alliances.

Delta is honored to have been named "the Most Preferred Airline" this year by business travelers* and we thank you for voting our SkyMiles program as the Best Frequent Flyer program in a Travel Savvy magazine survey. From upgraded features on delta.com, to refurbished cabins, to new routes and international destinations, to fewer restrictions and service fees, we're transforming Delta to be even better for you.

We encourage you to send comments and suggestions via e-mail to
restructure.delta@delta.com. You can also learn more about our
reorganization by visiting delta.com/restructure.

Click here to email restructure.delta@delta.com:
mailto:restructure.delta@delta.com

Click here to visit delta.com/restructure:
http://e.delta.com/ct/click?q=da-dTzjQUPb_4HS5dI8j9CDJ~x2Dxgi

Today, as always, Delta's proud team of dedicated professionals is at your service. As the people of Delta work together to become a more competitive airline, we appreciate your loyalty and the opportunity to meet your personal and business travel needs--now and in the future.

Thank you for choosing Delta.

Sincerely,

Gerald Grinstein
Chief Executive Officer

[lml41981]

US Airways has filed for bankruptcy protection twice. Both times they filed Chapter 11, which gives them a chance to reorganize their debt to better pay it off. Chapter 7 is liquidation - or getting rid of assets to pay off secured creditors first followed by unsecured creditors...and basically shutting down shop.

I flew US Airways about 10 or 12 times during their reorganization and accrued plenty of miles and was perfectly able to redeem them.