Friday, September 14, 2012

Analysis: Cutbacks by regional airlines hurt smaller United States cities

Atlanta (Reuters) – Banana seller Chiquita Brands this month will shutter its headquarters in Cincinnati, Ohio, in large part because of cutbacks in air service to the area.

Delta Air Lines has significantly shrank its presence at Cincinnati/Northern Kentucky International Airport to seek profits elsewhere. It now offers only roughly 120 daily flights — most with regional partners — at that hub, down from more than 600 flights six years ago.

Small and midsized cities across America are facing dramatic reductions in air service as tough economic times and rising fuel costs have spurred carriers like Delta to pare flying to money-losing markets and focus on big cities.

In smaller markets, much of the flying is done by regional carriers under contracts with the larger airlines, which are forcing the regionals to cut costs, restructure or close.

Delta is closing its Comair unit later in September; Pinnacle Airlines and American Eagle, a unit of American Airlines parent AMR Corp , are operating under Chapter 11 bankruptcy protection. Only 61 regional airlines remain today, down from 247 three decades ago.

Read more: http://www.chicagotribune.com

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