Delta- Running Low on Gas?

Recently Delta Air Lines has filed for Chapter 11 bankruptcy amidst higher fuel prices, and lower demand. Competition from other carriers with lower labor and operating costs has force Delta to make a number of moves to stay in business. Current negotiations will allow for Delta to remain operational after bankruptcy filings. Other measures such as worker layoffs, contract changes, reduced incomes, and cut or reduced pensions and health care benefits will also likely follow suite. A number of workers are likely to strike out against these cut backs, but in the end Delta will end up being much leaner than before and hopefully more apt at protecting it income from future problems. If there is a good note, Frequent Flier Miles and other passenger services are to remain untouched and will not be changed. Delta is now one of several other major air carriers which has recently filed bankruptcy including United Airlines, US Airways, and ATA Airlines.

What kind of impacts will this and other closings and cases have on business and the industry? Are major lines doomed to the modern economy, will they become more efficient, or will smaller carriers fill in the gaps?