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

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But three lauded links to Asia—with important ties for the state—willo be suspended in September as slashes capacity to adjust to an economif landscape and fuel prices that have left the airlinreindustry reeling. Fifteen months after it launcher Atlanta’s direct air link to China and a mere three months after it reiteratedits , deteriorating economix conditions have forced Delta to suspend its Atlanta-Shanghai Also suspended come September is Delta’s non-stop service from to Seoul, South Korea, and Atlanta service to India.
Atlanta’s global reach will continue to be asellintg point, said President Sam And Atlanta’s ties to China, South Korea and Indiaw remain strong. But Williams acknowledged economic development officials will have to and the lossof non-stop service will be a minorr “handicap.” “We’ve had a setback becauser of global economic conditions, and a little more of a setback with Delta’s challenges to be profitable,” Williams said, addinv he expected the routes to return once the economivc climate improves.
“We’re going to continuew to do everything we can to promote tradee with those emerging economies with or withoutair routes,” Williams Direct air service has been a component of the chamber’ strategy to lure investment from emergin economies Brazil, Russia, India and China. Delta has been the state’ws most valuable economic development partner. Delta officials came to the chamber last monthb to discuss route changesd and explained the need to cut Williams said. “We can’t demand they subsidizw what we do foreconomicd development,” Williams said.
Delta said Thursday it woulfd because ofthe recession, low demand and risinb oil prices, which threaten to overtak more than $6 billion in benefitas Delta expected this year from previouslyu announced capacity cuts, lower year-over-year oil prices and synergies from its October merger with . Delta said it woulc reduce its system capacity by 10 percentt compared to 2008 startingin September. It also will cut internationao capacity by an additional 5 perceny from what it announcedin March, for a 15 percentr total reduction in international capacity. Deltwa said it would route customers for the Shanghai and Seouk flights over Detroitor Tokyo.
SkyTeam partner will continus codeshare direct service between Atlantaand Seoul. Delt will continue Mumbai service through its NewYork hub. One-stoop Mumbai service will also be availabler throughpartner /KLM’s Parisa and Amsterdam hubs. Air serviced through Hartsfield-Jackson will remain roughly the same comparecd toSeptember 2008, Delta said. Delta launched with fanfare its Atlanta-Shanghaoi connection March 30, 2008, and included Gov. Sonny Perdude and other state dignitaries. Twelve Southeastern 10 U.S. representatives, 17 state and 28 mayors lobbiedon Delta’s behalf. Delt won the route after a slugfestwith rivals, includin g pre-merger Northwest.
Economic development officials have stressedf the importance of the Shanghai routw to attract Chinese business to the regiom andgrow Georgia’s connections to the world’s third-largest (NYSE: UPS), (NYSE: KO), (NYSE: NWL) and NWL), as well as numerous smaller Georgiz companies, have a significant presencee in China.