Delta Air Lines Departs From Bankruptcy

Delta Air Lines Inc. emerged from bankruptcy protection Monday as an independent carrier after surviving a hostile takeover bid during a 19½-month reorganization that saw it eliminate jobs, cut costs, restructure its fleet and focus more on international flying.

Delta's chief bankruptcy lawyer, Marshall Huebner, said in a 10:21 a.m. e-mail to The Associated Press that the wire transfers for a $2.5 billion loan — allowing it to pay back lenders who gave Delta money to help it operate while in bankruptcy — were completed.

"This is an amazing day for an extraordinary company, which has reclaimed its heritage and has emerged from Chapter 11 as a fierce, determined and well-capitalized competitor," Huebner said.

Delta has undergone a major facelift during its bankruptcy, and other changes are on the way as the nation's No. 3 carrier exits Chapter 11.

Among other things, it has set aside $10 million for a rebranding effort, , Huebner said in court recently.

Executives at Delta also have said that once the company exits bankruptcy, it will consider shedding Comair, a Delta subsidiary that provides regional service for the airline.

Delta's outgoing chief executive, Gerald Grinstein, said last week he did not expect any "immediate action" on Erlanger, Ky.-based Comair since Delta has a new board of directors.

Doug Abbey, a partner in the aviation consulting firm The Velocity Group, said he expects Delta to make a decision on Comair fairly quickly.

"I suspect that's one of the first orders of business coming out of bankruptcy," Abbey said. "I can't even predict how that's going to go."

Delta's board also will be looking for a new CEO to replace Grinstein, 74, who has said he plans to step down once his successor is appointed.

Meanwhile, a Delta spokeswoman, Betsy Talton, said "additional investments in Delta's image will be unveiled" at a news conference at the company's Atlanta headquarters a few hours after the airline exits bankruptcy protection. Talton declined to give details ahead of the announcement.

Repainting its planes is something that could help Delta with its brand image, but would take time to complete for a fleet consisting of several hundred aircraft, Abbey said.

"I think it's appropriate because this is clearly a new Delta, but in and of themselves, these things tend to be a very long-term project," Abbey said.

A new advertising campaign also could be in Delta's future, Abbey said.

The initiatives would be on top of major changes that Delta put in place after entering Chapter 11 on September 14th, 2005. While in bankruptcy, the airline restructured its fleet, expanded international service and improved aircraft cabins, while cutting about $3 billion in annual costs and eliminating 6,000 jobs.

On the financial side, existing shares of Delta's stock will be canceled at the time the airline exits bankruptcy. Shares of new stock will be issued and begin trading publicly on the New York Stock Exchange on Thursday. That day, Delta executives will ring the closing bell from the floor of the NYSE.

Delta passengers are unlikely to notice any tangible differences. But MyVacationPassport.com President Terry Trippler says you might see "a bounce in the step" and "a smile on the face" of Delta employees this morning.

To call up a company snapshot: Delta Air Lines (DALRQ)