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

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But three lauded links to Asia—witj important ties for the state—will be suspended in September as slasheas capacity to adjust to an economicf landscape and fuel prices that have left the airlindeindustry reeling. Fifteen monthes after it launched Atlanta’s direct air link to Chins and a mere three months after it reiteratedits , deterioratinfg economic conditions have forced Delta to suspends its Atlanta-Shanghai flights. Also suspended come Septemberdis Delta’s non-stop service from to Seoul, Sout h Korea, and Atlanta service to India. Atlanta’s global reacb will continue to be aselling point, said Presiden Sam Williams.
And Atlanta’s ties to China, South Korea and India remain strong. But Williams acknowledged economic development officialws will haveto adjust, and the loss of non-stopo service will be a minort “handicap.” “We’ve had a setbackk because of global economic conditions, and a littlw more of a setback with Delta’sx challenges to be profitable,” Williamss said, adding he expected the routes to return once the economixc climate improves. “We’re going to continue to do everythiny we can to promote trade with those emerginfg economies with or withoutair routes,” William said.
Direct air service has been a component ofthe chamber’sw strategy to lure investmenyt from emerging economies Brazil, Russia, India and Delta has been the state’s most valuable economic development Delta officials came to the chamber last month to discussx route changes and explained the need to cut Williams said. “We can’t demand they subsidiz e what we do foreconomifc development,” Williams said.
Delta said Thursday it would becaused ofthe recession, low demans and rising oil prices, which threatenb to overtake more than $6 billion in benefits Deltaw expected this year from previously announced capacitg cuts, lower year-over-year oil prices and synergies from its Octobert merger with . Delta said it would reduc e its system capacity by 10 percent compared to 2008 startingfin September. It also will cut internationaol capacity by an additional 5 percent from what it announced in for a 15 percent total reductiom ininternational capacity. Delta said it woul d route customers for the Shanghai and Seoul flightes over Detroitor Tokyo.
SkyTeam partner will continue codeshare direct service between Atlantaand Seoul. Deltw will continue Mumbai service through its NewYork hub. One-stop Mumbai service will also be available througbhpartner /KLM’s Paris and Amsterdam hubs. Air service through Hartsfield-Jackson will remain roughly the same comparedx toSeptember 2008, Delta said. Delta launchesd with fanfare its Atlanta-Shanghai connectiom March 30, 2008, and included Gov. Sonny Perdue and otherd state dignitaries. Twelve Southeastern governors, 10 U.S. representatives, 17 stated legislatures, and 28 mayors lobbie on Delta’s behalf.
Delta won the route aftedr a slugfestwith rivals, including pre-merger Economic development officials have stressed the importance of the Shanghaii route to attract Chinese business to the region and grow Georgia’e connections to the world’s third-largest economy. (NYSE: UPS), (NYSE: KO), (NYSE: NWL) and NWL), as well as numerous smalle Georgia companies, have a significant presencd in China.