How will Delta's bankruptcy impact Song?

[kenandlaura06]

If our flights are cancelled, can we get a refund?

[eroller]

I would not worry about flights being canceled. There is a good chance that Delta will file bankruptcy this week, but I don't anticipate ANY disruptions to the customer or operations. It will be "business as usual" which is exactly how this type of bankruptcy is structured. It gives the airline the chance to reorganize *without* disrupting operations. Your flight will NOT be canceled, and the airline is *NOT* going out of business ... just reorganizing. Most, if not all changes that occur in this type of bankruptcy are invisible to the customer. For instance, the Delta frequent flyer program Skymiles will be unchanged, and miles will NOT be lost. Delta will retain it's founding position in the Skyteam alliance and I only see that alliance getting stronger. FYI, United and USAir are currently in bankruptcy, but still operating business as usual, and Continental has filed bankruptcy three times in the past and they are actually doing the best of the legacy carriers. What you may see happen in the future, is that Delta will combine with another legacy carrier like Northwest or Continental. This is what is happening with American West and USAir. A bankruptcy does make an airline more attractive to buyers and mergers since much of the debt is erased. Of course if this were to happen, it would not be for quite some time. Most airlines today do not have a the cash on hand to make large expenditures like buying another airline.

 

I'm hoping that Delta filing bankruptcy will be a good thing, as the intent is to emerge in a year or so as a much stronger airline. Delta currently has a good management team at the helm, and I have confidence they have a viable business plan in place for future profitability. In fact were it not for exorbitant fuel prices, Delta would have posted a modest profit during the last two quarters. The airline has a good plan in place to cut costs, but it's not enough when compared to rising fuel costs.

 

Ernie

 

ps - Song is a "brand" of Delta ... again it will be business as usual. Song is currently under "review", but that has nothing to do with the bankruptcy and more to do with the future direction of the low-cost carrier and it's role within Delta.

[DanJ]

Adding to that, if Delta decides to cancel any Song flights, they will just re-book you on a mainline Delta flight.

[kenandlaura06]

Thanks Dan and Ernie. Very helpful.

[jnc411]

Hi, we are booked on Song in March and are glad to see this thread. We were not quite sure what it meant for us, but hopefully all is well :) Thanks

Cori

[hdawson]

At this point after filing Chap 11, it's generally believed and expected that Delta and Song combined will discontinue about 15% of thier domestic flights. Their greatest future is in international flights.

[JJPNYC]

Another theory that is being floated out there is that Delta will ultimately convert all of their domestic flights to the Song brand and fly all international routes under the Delta brand. This is based on the thinking that international flights are higher revenue producers & that Delta can continue to prvoide the amenities of international flight (i.e. first class, meals, etc.) if & only if they retain the Delta brand and charge accordingly for ticket prices.

[CruisinMatt]

.....

[DanJ]

I don't know if going all-Song domestically would be a good idea or not. There are an awful lot of frequent fliers who will switch to another airline if they don't have the opportunity for first class seating, (such as it is domestically).

 

Plus I don't think they have a bug enough fleet of any type to run an efficient low cost operation. Song is pretty much 757 exclusively and they aren't being built anymore.

[Cruiser_Guy]

I think that DL should convert to all Song, but keep the first class, and than just keep DL on the international routes to Europe, Asia, the Middle East, and South America.

[jnc411]

I keep checking the flysong site to see if our reserved flight is still there, it is the only non stop to the west coast in the afternoon/evening so I hope it doesn't change.

Cori

[DanJ]

So, if they go all-Song, but keep first class, how different is that than what Delta already offers domestically? Through the restructuring, they are already going to lower their wages to LCC levels anyway, for those not already there.

[Cruiser_Guy]

The IFE, the food, the seats, a lot of things, trust me. I have over 200,000 miles with DL as I fly them a lot. It stinks that they don't have Song on all the routes.