NEW YORK (Standard & Poor's) Sept. 8, 2004--Delta Air Lines Inc. ('CCC'/Negative) unveiled elements of its long awaited strategic plan, and warned that if the company does not reach agreement with its pilots' union and achieve other needed changes by the end of September, it would likely file for bankruptcy. Standard & Poor's ratings on Delta, which were lowered to current levels Aug 19, 2004, are not affected. Delta's CEO, Gerald Grinstein, disclosed broad outlines of a plan that will seek to combine cost cutting (an additional $2.7 billion of annual cash savings by 2006), enhanced customer service, debt reduction, and widespread network changes (including the closure of Delta's hub at Dallas-Fort Worth International Airport). Mr. Grinstein said that lessors,...
Companies mentioned in this report are:
- Delta Air Lines Inc.
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