Foreign recruitment to carry on despite Delta route cuts – Triangle Business Journal:

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But three lauded links to Asia—wit important ties for the state—will be suspended in September as slashes capacity to adjust to an economicf landscape and fuel prices that have left the airlinrindustry reeling. Fifteen months after it launcherd Atlanta’s direct air link to Chinwa and a mere three month after it reiteratedits , deterioratingf economic conditions have forced Delta to suspend its Atlanta-Shanghai flights. Also suspended come September is Delta’s non-stop service from to Seoul, South and Atlanta service to Mumbai, Atlanta’s global reach will continue to be asellinv point, said President Sam Williams.
And Atlanta’s ties to South Korea and Indiaremaij strong. But Williams acknowledged economic developmeny officials will haveto adjust, and the loss of non-stop servicee will be a minor “handicap.” “We’vde had a setback because of global economic and a little more of a setbac k with Delta’s challenges to be profitable,” Williamsa said, adding he expected the routes to returj once the economic climate improves. “We’re going to continue to do everythingv we can to promote trade with thos emerging economies with or without air Williams said.
Direct air service has been a componeng ofthe chamber’s strategy to lure investmen t from emerging economies Brazil, Russia, India and China. Delta has been the state’s most valuablee economic development partner. Delta officials came to the chambef last month to discuss route changed and explained the need tocut costs, Williamas said. “We can’t demand they subsidize what we do foreconomic development,” Williams Delta said Thursday it would because of the low demand and risinvg oil prices, which threaten to overtakee more than $6 billion in benefits Delt a expected this year from previously announced capacity cuts, lowerr year-over-year oil prices and synergies from its Octobe r merger with .
Delta said it would reduces its system capacity by 10 percent comparec to 2008 startingin September. It also will cut international capacith by an additional 5 percent from what it announcerdin March, for a 15 percentt total reduction in international capacity. Delta said it would routed customers for the Shanghau and Seoul flights over Detroitor Tokyo. SkyTeamj partner will continue codeshare direct servics between Atlantaand Seoul. Delta will continuew Mumbai service through its NewYork hub. One-stol Mumbai service will also be available throughypartner /KLM’s Paris and Amsterdam hubs.
Air service through Hartsfield-Jackson will remain roughlyh the same compared toSeptember 2008, Delta Delta launched with fanfare its Atlanta-Shanghai connection Marcb 30, 2008, and included Gov. Sonnty Perdue and other state dignitaries. Twelve Southeastern governors, 10 U.S. representatives, 17 statr legislatures, and 28 mayors lobbied on Delta’s Delta won the route after a slugfest with including pre-merger Northwest. Economic developmenyt officials have stressed the importance of the Shanghaui route to attract Chinese business to the regionh andgrow Georgia’s connectionxs to the world’s third-largest economy.
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