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Airlines Failing

Airlines Failing

Delta and Northwest airlines, which have struggled to avoid bankruptcy, on Wednesday filed for Chapter 11 protection, brought down by high oil prices and steep competition from low-cost carriers.
Ref. CNN.com

Failing Airlines

None of us are surprised by this. I guess the next question is going to be whether or not the government bails them out again. The US government has been bailing out ailing airliners for years. Delta and Northwestern were on the chopping block soon after 9/11 and had to be bailed out then. The fact is that while bailing these companies out helps them in the short run, ultimately they are going to have to give way to other companies taking their place. Its the way of free economics, they don't have what it takes to survive.