[Travelandtourism] [The-travel-monitor] Delta wants to pull service in some smallerdomestic markets

[Peachtree Travel]

Wow.  I didn't know the Federal Government pays the airlines for flying
service to small out of the way airports.  Looks like that's about to come
to an end.

Delta Air Lines Inc (DAL.N) said on Friday it would pull service in some
smaller U.S. markets to stem $14 million in annual losses associated with
such flights.

The halt is planned for 24 markets served under the Essential Air Service
program, a U.S. program created to make sure smaller cities have a minimum
level of passenger air service.

The U.S. Department of Transportation provides subsidies to airlines tied to
some markets under the program.

Cities affected by Delta's planned move include Watertown, South Dakota;
Waterloo, Iowa; and Butte, Montana, according to a list of affected cities
the carrier provided on its website.

Delta said flights in the affected markets on average depart with 52 percent
of seats filled, with some locations as low as 12 percent. Some flights have
been operated occasionally with no passengers on board, it added.

"The new reality of mounting cost pressures faced by our industry means we
can no longer afford to provide this service," Delta said in a statement.

Delta said plans to retire its Saab turboprop fleet and some 50-seat jets
hamper the economics of serving the smaller and rural areas. It said the DOT
would be able to select a new carrier to start service in the affected
Essential Air Service areas within a 90-day period, and added it was
coordinating with other carriers to bid on the routes in some cities.

The carrier also said it would continue service in some markets but was
seeking an increased program subsidy rate.


Peachtree Travel
Independent Travel Consultant

(phone) 888-389-2723

(website: http://www.peachtreetravel.net.

Affiliated as an Independent Contractor with Montrose Travel CST-1018299-10
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