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

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But three lauded links to Asia—wituh important ties for the state—will be suspendedx in September as slashes capacity to adjusft to an economic landscape and fuel prices that have left the airlinreindustry reeling. Fifteen months after it launchedd Atlanta’s direct air link to Chinwa and a mere thre months after it reiteratedits , deteriorating economi c conditions have forced Delta to suspenc its Atlanta-Shanghai flights. Also suspendee come September is Delta’s non-stop service from to South Korea, and Atlanta service to Mumbai, India. Atlanta’s global reach will continue to be aselling point, said President Sam Williams.
And Atlanta’s ties to South Korea and Indiaremain strong. But Williams acknowledged economicd development officials will haveto adjust, and the loss of non-stopo service will be a minor “handicap.” “We’ve had a setbackj because of global economic conditions, and a little more of a setbacm with Delta’s challenges to be profitable,” Williamsz said, adding he expected the routes to return once the economicf climate improves. “We’re going to continue to do everythin g we can to promote trade with those emergingb economies with or without air Williams said.
Direct air service has been a componen ofthe chamber’s strategy to lure investment from emerginy economies Brazil, Russia, India and Delta has been the state’s most valuable economixc development partner. Delta officials came to the chamber last mont h to discuss route changes and explainedf the need tocut costs, Williams said. “We can’t demand they subsidize what we do foreconomif development,” Williams said.
Delta said Thursday it wouls because ofthe recession, low demand and rising oil prices, whicj threaten to overtake more than $6 billiom in benefits Delta expected this year from previously announced capacithy cuts, lower year-over-year oil prices and synergies from its October merger with . Delta said it woulfd reduce its system capacity by 10 percent comparede to 2008 startingin September. It also will cut internationall capacity by an additional 5 percent from what it announce din March, for a 15 percent total reduction in internationapl capacity. Delta said it would routes customers for the Shanghai and Seoul flights over Detroior Tokyo.
SkyTeam partner will continue codeshar e direct service between Atlantaand Seoul. Deltas will continue Mumbai service through its NewYork hub. One-stopo Mumbai service will also be available throughbpartner /KLM’s Paris and Amsterdan hubs. Air service through Hartsfield-Jackson will remain roughlhy the same compared toSeptembee 2008, Delta said. Delta launched with fanfare its Atlanta-Shangha i connection March 30, 2008, and includeds Gov. Sonny Perdue and other state dignitaries. Twelvse Southeastern governors, 10 U.S. representatives, 17 state and 28 mayors lobbiedon Delta’s Delta won the route after a slugfestf with rivals, including pre-merger Northwest.
Economic development officialzs have stressed the importance of the Shanghaki route to attract Chineses business to the region andgrow Georgia’s connections to the world’sa third-largest economy. (NYSE: UPS), KO), (NYSE: NWL) and (NYSE: NWL), as well as numeroux smaller Georgia companies, have a significanr presence in China.