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COPYRIGHT 2005 The Dallas Morning News
Byline: Eric Torbenson
Aug. 22--Now boarding in the struggling airline industry: more turmoil.
Over the weekend, Northwest Airlines Inc. began fighting off a mechanics strike. About 4,400 aircraft mechanics and cleaners walked off the job Friday night, but the nation's No. 4 carrier, intent on lowering its costs, replaced them with managers and hired replacements.
Other major players are staring down insolvency.
Delta Air Lines Inc. told its pilots' union Friday that the carrier's cash reserves had fallen under an unidentified level that opens the window for more employee concessions. Most analysts say Delta, the No. 3 carrier, is flying straight into a Chapter 11 bankruptcy filing, unless it can pull multiple rabbits from various hats.
With the industry facing what's almost certain to shake out as its most turbulent fall since the 9-11 terrorist attacks four years ago, North Texas' top two carriers have enviable seats on the sidelines.
But it's far from clear whether misfortunes at Delta, Northwest and other troubled players will hurt or help Fort Worth-based American Airlines Inc. and Southwest Airlines Co. of Dallas.
"It's a double-edged sword for them," said Alan Sbarra, an independent airline consultant. "The ideal situation for both of them is to see carriers go out of business fast."
The trouble is that weak airlines don't make a habit of going away quickly or quietly.
A year ago most experts had written off US Airways, based in Arlington, Va., but a second trip to bankruptcy court in three years yielded a merger...
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