Delta, Northwest Join Chapter 11 Club
By Elizabeth Holmes
So, no surprises — the country's third and fourth largest airlines say they are losing money because of pilots, mechanics, fuel costs and (even with travel back to record highs) the terrorist attacks of 9/11. No mention of poor management, no business plan, unfathomable pricing structures that increasingly alienate their customers, and effectively "dismissing" their commissioned sales force. OK, enough ranting.
On September 14th, Delta and Northwest airlines filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code. This puts five US airlines — including three of the top four — under Chapter 11 protection: United, US Airways, Hawaiian and now Delta and Northwest. If you haven't done the math, that is over 50 percent of total US airline capacity.
All airlines say the same thing: service will not be disrupted, they will still provide safe and reliable service, customers can continue to book with confidence and of course — most important of all — their frequent flyer programs and club rooms will not be disrupted!
However, as travel agents we constantly worry about our clients' trips and whether we can count on the airline to be operating when they want to travel. We try to shift our clients to carriers that appear more stable, but the list is getting mighty slim. For overseas travel we can still count on foreign airlines, but in the US I think a lot of business is going to be shifted to those "low cost" carriers that the airlines also blame for their financial problems.
Anyway, onward we go. By now you know how important it is to carry your electronic ticket receipt. This is your only proof of ticket purchase and if anything goes wrong, it provides an alternate airline with all the information they need to help you get to your destination. It is also your ticket to the creditors line in court. Another word to the wise, reconfirm your flights prior to departure and return. Often when airlines go into Chapter 11, they cut back on flights. I guess the bottom line for me is not to get too jittery in these strange times, but be informed when you travel and USE THOSE MILES!
Elizabeth Holmes runs Elizabeth Holmes Travel in Seattle, WA.