Delta Air Lines has emerged from Chapter 11 bankruptcy protection one year ahead of schedule following the completion of a successful 19-month financial restructuring. The carrier, once one of the more profitable airlines in the world, has in recent years struggled for survival along with other major US airlines. While in bankruptcy protection, Delta restructured its fleet, expanded international services and improved aircraft cabins, while cutting about US$3 billion in annual costs and eliminating 6,000 jobs. It also successfully fought off a hostile takeover bid from US Airways. “Through our restructuring we have successfully repaired our balance sheet, improved the customer experience, expanded our international route system and built a platform for future success,” said chief executive officer Gerald Grinstein. “Delta is now a fierce competitor in a tough industry and we are confident that we will reclaim our rightful place as an industry leader.” The airline – the third-largest US carrier – posted an operating profit of US$155 million during the first quarter, the fourth consecutive quarter it has operated at a surplus. Among the changes is a rebranding, which will be implemented across the fleet and at airports during the next two years. Delta's restructuring success builds on more than five years of change that has delivered over $8 billion in annual cost and revenue improvements to the company. “Rather than simply cut costs, Delta used the Chapter 11 process to completely transform every aspect of our business and create a platform for long-term success that will enable us to weather future volatility in the airline industry,” said Edward Bastian, Delta's chief financial officer. Delta's operational improvements have focused on enhancing the customer experience and creating a stronger, more balanced network as a result of the addition of more than 60 new international routes. The airline currently serves a total of 456 destinations in 100 countries. At the beginning of May, it added a new non-stop link between Atlanta and Prague, the first of 14 new international routes being introduced this month and next. Gulf Air axes routes
Gulf Air is axing six routes as part of a major restructuring of the airline, following the appointment of a new CEO.
Services on the Bahrain-Johannesburg and Muscat-Jakarta sectors have already been suspended in both directions, with flights between Bangkok and Hong Kong ceasing at the end of May. A month later, it is cutting services to Singapore, Sydney and Dublin. Passengers booked on these services are being offered a full refund. AirAsia postpones launch
AirAsia Long Haul, the new Kuala Lumpur-based carrier, has postponed the launch of its low-cost flights to China, Japan and Korea by one month, with services now scheduled to take off in September. Planned flights to London Stansted have also been delayed until the availability of more aircraft.
Meanwhile, the carrier, which has changed its name from the original AirAsia X, has placed an order for 10 Airbus A330-300 aircraft, with options for an additional five. News in brief... India’s first all-vegetarian carrier – MDLR Airlines – has launched services on the Delhi-Chandigarh route, using a 70-seat Avro RJ. More routes are planned this month, including services to Kolkata and Ranchi, with Mumbai, Surat, Jaipur and Bhavnagar due to be added to the network later in the year. A number of Nigerian airlines have been banned from flying after failing to meet a recapitalization deadline set by the Nigerian Civil Aviation Authority. ADC, Albalka Airline, Cool Airline, Dasab Airline, Fresh Air, Sky Power and Sosoliso Airline are among those reported to have had their operating licenses automatically withdrawn. Norwegian Air Shuttle, Scandinavia's largest low-cost airline, has acquired full ownership of Finnair’s Swedish subsidiary, FlyNordic.
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