Airline Bankruptcy Watch

United Airlines [UALAQ] last week announced a capacity shift from domestic mainline flying to more international routes. By next March, United will cut 68 mainline aircraft from its domestic fleet. The move will reduce its domestic capacity by 12 percent as measured by available seat miles (ASM). It will boost its international capacity by 14 percent.
United is not saying if the reduction in the mainline fleet will result in an increase in regional flying. In fact the announcement makes no mention of its United Express operation as part of this new plan. United representatives could not be reached for comment.

Trying to avoid bankruptcy, Delta Air Lines [DAL] will impose a 10 percent pay cut on all employees, except its unionized pilots. The pay cut as well as reductions in benefits will take effect on Jan. 1. The airline already announced it would cut up to 7,000 from its workforce over the next 18 months. Delta wants its pilots to accept a 35 percent pay cut - a $1 billion annual savings. The company is now giving the union just weeks to come to an agreement before it will be forced to file bankruptcy.

Aviation Today