Delta Airlines filed bankruptcy in 2005 shortly before Delphi Corporation did the same thing. Delta was facing many of the same issues as Delphi including a drastic under-funding of employee pension plans.
             "We would rather take our chances with a bankruptcy judge than submit to management's proposed terms and working conditions, said O.V. Delle-Femine, union director." (Chapter 2005)
             Unlike the UAW's reaction to Delphi's bankruptcy filing, the union representing Delta's employees took a less emotional tact, probably realizing that it was a hopeless case attempting to stop the inevitable. The risk the union took in taking that tact was that the employees represented by the union would feel sold out.
             According to published reports, "Chapter 11 protection will allow Delta to pursue cuts in wages for its 65,000-plus full-time employees, as well as pension and health benefits for workers and retirees, that would have been more difficult or impossible without protected status." (Chapter 2005).
             Delta, however, had weighed the risks and alternatives and found their options extremely limited. At the time of the filing there were 5 major air carriers in bankruptcy and seven not in that status. The question begs then of how are the other seven faring? One report said that the company founder of Southwest Airlines, Herb Kelleher, "was pretty upset about the bankruptcies...Herb calls bankruptcy a health spa for airlines." (Delta 2005)
             Obviously some companies will take the easy way out, while others will work hard to find solutions to their problems. It seems that the shareholders of both types of companies would be instrumental in ensuring that the companies live up to expected standards, after all the shareholders are part owners as well.
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