Delta Air Lines announced two financing deals on Monday, but its most sought-after agreement, with its pilots' union, remained elusive.
Delta said that it had reached a US$600 million financing agreement with American Express Travel Related Services, including a US$100 million loan. The airline also said that it had reached a deal with various debt holders to defer US$135 million in notes that were due next year.
But Delta said in a regulatory filing that it had not reached agreement on debtor-in-possession financing, which it would need to operate under Chapter 11 bankruptcy protection.
A court filing could occur as soon as today if the airline cannot agree with its pilots on US$1 billion in wage and benefit cuts and resolve other financial issues, people with knowledge of Delta's plans have said.
Delta, the US' third-largest airline behind American and United, has warned repeatedly that it will have to seek court protection unless it reaches a deal with its pilots on US$1 billion in wage and benefit cuts, and achieves agreements with its debt holders.
Delta's pilots, who are the highest paid in the industry, have proposed cuts worth up to US$705 million. Leaders of the Air Line Pilots Association, which represents Delta's pilots, met on Monday in Herndon, Virginia, where the union's national headquarters are.
The meeting came as negotiators for the union and the airline continued discussions that occurred over the weekend.
A spokeswoman for the union said late on Monday that the talks were continuing but offered no further information.
Agreement with the pilots' union is required for Delta's deal with American Express to take effect. Under it, American Express said it would lend Delta US$100 million as part of a credit facility. Delta said it was still completing deals with other lenders.
Delta agreed to pay American Express in advance for US$500 million in SkyMiles, which are awarded by its frequent-flier program.
American Express credit card customers can earn SkyMiles through their purchases.
The agreement is backed by Delta's assets, and includes lengthy requirements that Delta must meet in case it seeks Chapter 11 protection.
TYPHOON: The storm’s path indicates a high possibility of Krathon making landfall in Pingtung County, depending on when the storm turns north, the CWA said Typhoon Krathon is strengthening and is more likely to make landfall in Taiwan, the Central Weather Administration (CWA) said in a forecast released yesterday afternoon. As of 2pm yesterday, the CWA’s updated sea warning for Krathon showed that the storm was about 430km southeast of Oluanpi (鵝鑾鼻), Taiwan’s southernmost point. It was moving in west-northwest at 9kph, with maximum sustained winds of 119kph and gusts of up to 155kph, CWA data showed. Krathon is expected to move further west before turning north tomorrow, CWA forecaster Wu Wan-hua (伍婉華) said. The CWA’s latest forecast and other countries’ projections of the storm’s path indicate a higher
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
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STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
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