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monsoon

Delta Bankrupcy

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What would a Delta bankrupcy mean for Atlanta and its airport? Would Hartsfield cease being the world's busiest airport and instead become a regional airport, say such as Raleigh NC?

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I think, if Delta left, Hartsfield would shrink to be a little larger than Charlotte's airport. After all, even if Delta left, Air Tran and some other airlines still have major operations in Atlanta.

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What would a Delta bankrupcy mean for Atlanta and its airport?    Would Hartsfield cease being the world's busiest airport and instead become a regional airport, say such as Raleigh NC?

<{POST_SNAPBACK}>

I doubt it will become a regional airport, it's too important to the nation for that. I do believe, though, that passenger numbers at the airport will decline some (I do want to predict how many, though).

Is it just trying to clear its credit or actually "go under" like Enron did.

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What would a Delta bankrupcy mean for Atlanta and its airport?    Would Hartsfield cease being the world's busiest airport and instead become a regional airport, say such as Raleigh NC?

<{POST_SNAPBACK}>

This one is easy.

NO...

Hartsfield will always be a National HUB of importance. Another airline would be more than happy to set up shop if Delta folded.

A2

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Is it just trying to clear its credit or actually "go under" like Enron did.

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They expect Delta to file Chapter 11, which allows them to re-organize their debt and contractual obligations. The company will continue to operate during that time.

There is some good news that could come out of this. Delta's Chapter 11 filing could lose them their runway and take-off rights, allowing competitors like Jet Blue (which tried to service Atlanta, but was pushed out by Delta's Song) to finally operate in Atlanta. Atlanta's centralized location makes it ideal for many airlines, but with Delta's monopoly many never had the opportunity to fully service Atlanta.

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They expect Delta to file Chapter 11, which allows them to re-organize their debt and contractual obligations. The company will continue to operate during that time.

That's what I figured.

There is some good news that could come out of this. Delta's Chapter 11 filing could lose them their runway and take-off rights, allowing competitors like Jet Blue (which tried to service Atlanta, but was pushed out by Delta's Song) to finally operate in Atlanta. Atlanta's centralized location makes it ideal for many airlines, but with Delta's monopoly many never had the opportunity to fully service Atlanta.

<{POST_SNAPBACK}>

So, this then would allow ATL Airport to expand its airline base, right?

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They expect Delta to file Chapter 11, which allows them to re-organize their debt and contractual obligations. The company will continue to operate during that time.

There is some good news that could come out of this. Delta's Chapter 11 filing could lose them their runway and take-off rights, allowing competitors like Jet Blue (which tried to service Atlanta, but was pushed out by Delta's Song) to finally operate in Atlanta. Atlanta's centralized location makes it ideal for many airlines, but with Delta's monopoly many never had the opportunity to fully service Atlanta.

<{POST_SNAPBACK}>

I will dovetail onto that girly by adding that airlines move into an area if the Infastructure is there.

In ATL's case it is there and then some.

A2

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They expect Delta to file Chapter 11, which allows them to re-organize their debt and contractual obligations. The company will continue to operate during that time.

There is some good news that could come out of this. Delta's Chapter 11 filing could lose them their runway and take-off rights, allowing competitors like Jet Blue (which tried to service Atlanta, but was pushed out by Delta's Song) to finally operate in Atlanta. Atlanta's centralized location makes it ideal for many airlines, but with Delta's monopoly many never had the opportunity to fully service Atlanta.

<{POST_SNAPBACK}>

Excellent, excellent, excellent post Girly.

Bankruptcy doesn't mean going out of business. If my memory serves me correctly didn't United Airlines file bankruptcy and is still in it? O'Hare sure didn't suffer much now did it?

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Excellent, excellent, excellent post Girly.

Bankruptcy doesn't mean going out of business. If my memory serves me correctly didn't United Airlines file bankruptcy and is still in it? O'Hare sure didn't suffer much now did it?

<{POST_SNAPBACK}>

USair has been in bankruptcy twice and they're still flying. Bankruptcy does not mean going out of business.

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USair has been in bankruptcy twice and they're still flying.  Bankruptcy does not mean going out of business.

<{POST_SNAPBACK}>

Exactly! Atlanta won't suffer much at all, neither will the airport. How in the world can the world's busiest airport go down to a regional airport? That is totally ridiculous. Delta is going nowhere. It will take some time, but the company should be fine in the next few years.

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Bankruptcy is really a gift to Delta. Sounds awful and it is bad for their creditors and stockholders, but it does relieve a lot of problems for the company. If you look at WorldCom (MCI now), they were relieved of their debt burden and it really made them a force to be recond with in their industry. Of course it takes good management on the part of Delta after bankruptcy to redeem themselves.

Who knows though, the airline industry has always been a mediocre business. In any case, no, it really won't have an impact on the Atlanta airport. Delta already has a huge infrastructure there and if they don't continue as a company I'm sure another airline would come along and pick up where they left off (through acquisition).

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