Philip Baggaley Bankruptcy Quotations

I wouldn't expect to see any major effects of these bankruptcy filings on passengers. I think both carriers will restructure successfully and continue flying.

The recent surge in fuel prices and Delta's disclosure that it will have to post 750 million dollars of cash collateral to extend its credit card processing agreement indicate that the airline's already slim chances of avoiding bankruptcy are dwindling rapidly.

They are another example of a company that started out in a relatively stronger financial position than their peers, and they felt they were in better position to survive a shakeout. They didn't pursue cost-cutting as aggressively as they would have if they were heading toward bankruptcy early in the (industry's) downturn.

A situation where you have United, Delta and Northwest all in bankruptcy does make it easier to think about further consolidation.

The added financial pressure may hasten an already likely bankruptcy filing, which will probably occur within weeks.

The airline's already slim chances of avoiding bankruptcy are dwindling rapidly.