Rising fuel costs, lower priced competitive strategies, and pension obligations have pushed Delta Air and Northwest to file for Chapter 11 federal bankruptcy protection from their creditors.

Both airlines declared Chapter 11 bankruptcy last Wednesday after weeks of rising costs straining both airlines finances.

With this bankruptcy protection, both airlines will likely cut pensions as well as various other sectors of operation.

“Fort Worth, Texas-based AMR Corp., the parent of American Airlines, the nation's biggest carrier, teetered on the verge of bankruptcy before winning deep concessions from its employees” as reported by the associated press.

With Delta's filing, it becomes the third major airline carrier to file for Chapter 11 bankruptcy since the 2001 terrorist attacks.

sources: the associated press, Delta Air

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