What is Chapter 11?
Chapter 11 bankruptcy is a form of court protection for a company while it works to restructure its operations. The goal for both Delta and Northwest (as well United and US Airways, both of which are also in Chapter 11) is to emerge from court protection as profitable companies.

In past Chapter 11 filings by airlines, some have gone on to be successful, while others have liquidated in a Chapter 7 filing. Of course, we hope for the best for these airlines, as they are our partners in one of the most important functions of doing business – travel. However, no matter the outcome, we assure you we are prepared to protect the interests of our clients.

If I have travel plans on Delta or Northwest, do I need to change tickets?
You can keep your travel plans. Chapter 11 bankruptcy takes time – often years – and in the short term flight schedules are not generally changed. We are closely monitoring these airlines for any changes. If routes or flights are cancelled, anyone holding tickets will be notified of the change and re-accommodated as necessary. In fact, Delta cancelled some flights in and out of Cincinnati prior to filing for bankruptcy protection, and we have already made necessary adjustments.

Should I continue to book flights on Delta and Northwest?
Yes. We don’t foresee an immediate change in services provided by these airlines, so you should continue to follow company policy with regard to choosing an airline for future flights. These policies are designed to get you the most travel value for your dollar through volume-based agreements with preferred airlines.

What about flights on United?
United has continued to operate flights as normal under bankruptcy, so you should continue to book United flights as normal. We are closely monitoring United for any changes. If routes or flights are cancelled, anyone holding tickets will be notified of the change and re-accommodated as necessary.

Should I do anything different when purchasing tickets on these airlines?
You must use a credit card when purchasing tickets on Delta, Northwest or United. Most of your travel purchases are credit card transactions, so this should not be problematic. Your relationship with your card affords you the added protection if an airline does not provide the services purchased. Under the Fair Credit Billing Act, credit card customers have the right to refuse a charge for a service not rendered.

And US Airways?
US Airways is in the process of gaining all necessary approvals for a merger with America West. All indications are that the merger will be approved, and that the new merged US Airways will move successfully out of Chapter 11. You should continue to book flights and to travel on US Airways as normal.

What if any one of these airlines cancels a flight and I have a ticket?
First, remember that we are here to help. You can always contact Travel-On. We will make sure you have the appropriate arrangements to support your trip.

What do these changes in the airline industry mean in the long run?
The airlines industry has seen very challenging times for several years. Airlines have been unable to get enough traction to raise prices in order to offset their rising costs. Experts agree that for the industry to truly rebound, some changes have to be made.

With the nation’s top four airlines currently in bankruptcy protection, we can certainly expect some changes. The US Airways merger with America West provides a good example. Additional consolidation is certainly a possibility. We will also see reductions in flights and routes, either as airlines merge and cut overlapping service, or as those in bankruptcy seek to reduce their operating costs. Less choice will likely lead to higher prices for air travel.

If air travel prices increase, we will continue to work to ensure you get the most travel value for your dollar. We have long-established relationships with our airline partners, allowing us to drive negotiations on behalf of our customers.

And as the market changes, we will quickly adapt to understand and respond to those changes to ensure we meet your needs and your organization’s strategic goals.

What about frequent flyer miles?
Your frequent flyer miles are yours, so you should make your own decisions about what, if anything, to do.

As you make that decision, you should know that experts generally agree that there is no reason to panic about frequent flyer miles. Airlines in bankruptcy have generally worked hard to protect their loyalty programs, because they are dependent upon their best customers. If an airline does cease operations altogether, its assets are sold off to pay debts, and loyalty programs are valuable assets. In other words, if an airline stops flying, another airline is likely to buy your frequent flyer miles and let you redeem them for travel.

That said, some travelers do feel more comfortable using frequent flyer miles in these situations. If you decide to do that, you should understand that it is likely to be very challenging to make a reservation using your miles. Only a small number of seats are available for purchase with miles, and many people are likely to try to get those seats now. You may want to consider using your miles on a bankrupt carrier to purchase seats on one of its partner airlines. You can also use miles for other types of purchases, such as magazines. You can donate your miles to charity, including Hurricane Katrina relief.

(See http://www.redcross.org/donate/donatemiles.html and http://www.miledonor.com/news/?art_key=42 ).