In what most likely will be a blow to the availability of cheap airplane tickets and cheap vacation packages in 24 small U.S. communities, Delta Air Lines has notified the Department of Transportation (DOT) that it intends to stop servicing those markets.
16 of the markets are subsidized by the governments Essential Air Service (EAS) program. Delta will continue to service EAS communities until the DOT finds a replacement airline.
Included in the cutback are small airports in Iowa, Maryland, Michigan, Mississippi, Montana, North and South Dakota. Delta says that it has been running $14 million in annual losses as a result of serving these markets.
Delta claimed that continued service to these markets would have become even more expensive with its plans to retire Saab turboprops and some 50 seat jets.
As a result of Deltas notification, DOT has 90 days to select a different airline to service the affected EAS communities. If DOT is unable to find an alternative airline, Delta would be entitled to receive compensation to offset its continuing cost of operations in those markets.
Deltas domestic system wide load factor (the number of seats filled vs. the number of available seats) is averaging 83 percent. The average load factor for the 24 markets Delta wishes to no longer service is 52 percent. The city experiencing the least traffic is Thief River Falls, Minnesota, with a load factor of only 12 percent. www.cheapfares.com