The Hindu Business Line : Delta Airlines may seek bankruptcy petition

AFTER US Airways, it now appears to be the turn of Delta Airlines. The Atlanta-based carrier has announced that its independent auditor has raised doubts about its financial viability and a revised annual report now talks about the possibility of bankruptcy petition "in the near term".

Delta Airlines, the nation's third largest air carrier, has said that since filing its annual report with the Securities and Exchange Commission for the year that ended December 31, 2003 "significant events" have taken place that "materially adversely affected" its financial condition and results of operation.

"These events...include a further decrease in domestic passenger mile yield and near historically high levels of aircraft fuel prices," the airline said.

The airline added that its independent auditor, Deloitte and Touche, has re-issued its report "to raise substantial doubt about the company's ability to continue as a going concern".

For its part the airline has warned that it would be forced into bankruptcy court to seek re-organisation and protection from creditors unless it was able to get $ 1-billion worth of concessions from pilots or able to restructure parts of a $ 20-billion debt.

Delta Airlines' executives who were hopeful of some agreement with the pilots by the end of this week have since gone back on their assessment. "Probably not" was the response of the company CEO, Mr Gerald Grinstein.

There is also fear that its pilots could "jump ship en masse" because they are worried about their pensions. Several hundred

Delta pilots are said to have retired early in recent months and many more have threatened to do so, it is being pointed out.