Delta Cutting Atlanta-Shanghai Route Again Trevor Williams Atlanta - 11.22.11 On Jan. 18, Delta will once again suspend its nonstop service from Atlanta to Shanghai, the financial center of China. Delta Air Lines Inc.'s nonstop flight from Shanghai is among six international routes from Atlanta being suspended amid flagging demand and high fuel prices. Launched in 2008 as the airline's first flight to China, the route was cut a little more than a year later and was brought back this June operating twice per week. Businesspeople lamented the loss of the flight and cheered its return this summer. Delta had high hopes for its return, but the flight's poor performance "didn't justify us continuing it," said Delta spokesman Trebor Banstetter. Rising oil prices have been a major hurdle, denting demand as Delta raised prices to deal with the higher costs, especially on flights across the Atlantic, Mr. Banstetter said. In addition to suspending Shanghai, Delta will also discontinue nonstop routes from Atlanta to Tel Aviv, Israel; Athens, Greece; Copenhagen; Prague and Moscow. These had been previously reduced to seasonal service and will not return this summer. The Shanghai flight will be suspended as of Jan. 18. Travelers will be able to reach all of these destinations through connecting flights or on partner airlines, Mr. Banstetter said, noting that Delta continues to serve some of the affected routes, such as Tel Aviv, from New York. Shanghai can be reached with one stop through Detroit or Delta's Asian hub in Tokyo. The Atlanta-Tokyo route will soon be upgraded to a new plane that will about 100 seats, he said. Due to geography, Asia is a tough market to serve from Atlanta, Mr. Banstetter said. The Shanghai flight was even more difficult, since it relied more on local business traffic than most international routes, which are mostly filled with connecting passengers. In the long-term, the factors that led Delta to restart the service from Atlanta - business between Georgia and China - will continue to grow, but the "uncertain economy" has made it unfeasible for the near future, Mr. Banstetter said. "Trade with China is only going to grow in Atlanta. Atlanta in the long-term will be a great city for some really robust Asian service," he added. The reduction in international service from Atlanta will come as Hartsfield-Jackson Atlanta International Airport opens its new $1.4 billion international terminal next spring. Delta's support was key to financing the new facility. Mr. Banstetter said the cuts don't affect Delta's outlook for the terminal. It will add much needed service improvements, providing airport access from Interstate 75 and eliminating the need for international travelers to recheck baggage upon arrival at Hartsfield. "For us, it's very much about the long-term growth and Atlanta's status as our No. 1 international gateway," he said. "Fluctuations in the schedule from year to year don't really have an impact in terms of our view of the terminal. We're still really big fans of it." Though subject to the same trans-Atlantic difficulties as routes to Europe, Delta's Africa flights have continued to perform well, partially because capacity is more limited. Delta will celebrate the fifth anniversary of its Atlanta-Johannesburg route on Dec. 4, Mr. Banstetter said. |
Wednesday, November 23, 2011
Delta Cutting Atlanta-Shanghai Route Again
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