Delta

Delta to cut some domestic routes

Delta Air Lines plans to cut some domestic routes as part of its measures to exit Chapter 11 bankruptcy, Gerald Grinstein, the airline's CEO, has said.

However, while the move will cut competition and choice in the regional flight market, Delta also plans to increase its number of international flights, which could help to bring down the cost of flying abroad.

The move towards offering more international flights is becoming common practice among traditional carriers as they battle the low-cost airlines.

In 2005, Continental Airlines' international traffic rose by 12.6 per cent and the schedule featured new long-haul destinations including Beijing and New Delhi.

In the long term this international expansion will be good news for travelers. As in the domestic market over the past five years, increased competition leads to lower flight prices.

Meanwhile, with so many operators now running so many routes in the US, the loss of a handful of Delta flights will not have much impact on domestic ticket prices.

Indeed, recent data shows that compared to 2004, domestic traffic grew by 5.3 per cent in the nine months to September last year. With competition so fierce industry analysts expect that any routes Delta cancels will be replaced promptly by another carrier.

© Adfero Ltd

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