| In a move thought by some as an attempt to stave | | | | also be sold. |
| off bankruptcy as well as to generate cash, Delta | | | | Delta AirElite, the business jet sector of the company, |
| Airlines made the move on August 16, 2005, to sell one | | | | is the most profitable part of the company. A sale of |
| of its regional carriers, Atlantic Southeast Airlines, to | | | | this company would probably signal to the industry that |
| Skywest, Inc. The sale comes in the face of rising fuel | | | | Delta cannot recover from its current financial plight. |
| prices and a high debt burden that many U.S. airlines in | | | | Cash rich Gulfstream Aerospace Company or TAG |
| addition to Delta are carrying. | | | | Aviation may serve as viable suitors for this company. |
| As much as the $425 million selling price of the regional | | | | Comair, another regional carrier owned by Delta, could |
| carrier will infuse Delta with cash, the carrier still has | | | | also be put on the auction block. Selling this regional |
| nearly $20 billion dollars in outstanding debt and leasing | | | | carrier would leave Delta without a regional service |
| costs to manage. Delta is expected to use some of | | | | provider, however. |
| the funds to reduce their debt and set aside the | | | | Ultimately, these are bleak times for the venerable |
| remaining monies as reserves. Delta must have a | | | | carrier. Odds strongly suggest that the company will |
| reserve in place totaling $750 million dollars as it | | | | seek bankruptcy protection this fall, particularly before |
| negotiates with a credit card processor this fall to | | | | changes in the U.S. bankruptcy law take place in |
| extend or renew its contract with the processor. | | | | October. High fuel prices and poor management |
| Without the reserves and the extension, Delta would | | | | decisions have contributed to Delta's current state of |
| be certain to file for bankruptcy. | | | | affairs; unfortunately employees and passengers will |
| While Atlantic Southeast Airlines is no longer part of | | | | likely suffer the most should Delta go bankrupt. |
| the Delta portfolio, two other divisions remain and may | | | | |