Delta Air Lines shrinks Dubai service

[Hatu]

Aug 9 (Reuters) - Delta Air Lines Inc has scrapped a number of its flights to Dubai this winter in an apparent nod to how competition with three Gulf carriers is hurting its business.

http://finance.yahoo.com/news/delta-air-lines-shrinks-dubai-142922654.html

 

[robbedagain]

Its a strategic move.

 

[WorldTraveler]

DL has not operated ATL-DXB on a daily basis in the winter for a couple of years.

It is certain that the growth of EK in the US is cutting into what DL carried since ATL-DXB like most of DL's ATL int'l flights is heavily dependent on connecting traffic.

DL also said it would reduce int'l capacity during the winter and this is simply part of it. AA also has released a number of int'l reductions some of which are deeper than in the past.

Americans do very little leisure travel in the winter; US int'l travel is more dependent on US originating travel than in the past due to the strong dollar. Given that predictions of a weakening of the dollar relative to global currencies and an increase in the price of oil continue to be pushed back further into the future, US carrier int'l networks will shrink in the winter when the cost of travel to the US is higher due to weaker foreign currencies. The converse is that US carrier int'l networks will be much more internationally focused in the summer and US carriers will push their networks harder at the times when Americans travel.


but it also highlights that there is slack in DL's international fleet which allows int'l aircraft to be used on the domestic system in the winter as well as for charter work. Many professional sports charters prefer using int'l aircraft because of the premium cabin seats; DL will carry a significant number of NFL teams.


Given that DL sees these market trends that are developing and adapts to them and finds ways to succeed in them, all stakeholders still win.

 

[FrugalFlyerv2.0]

DL has not operated ATL-DXB on a daily basis in the winter for a couple of years.

 
Could have stopped right here.
But you can't help yourself to anything else but to circle the wagons for DL.

 

[WorldTraveler]

nope. they are simply facts.

DL's network doesn't revolve around DXB. It likely was a very profitable route on a year round basis at one time. It would appear that its profitability in the winter has been eroded.

DL like other carriers reduces its winter flying in many markets. If any carrier can make appropriate adjustments to its network to use that capacity elsewhere, that is what ANY profit motivated company should be doing and no one here has ever argued otherwise.

 

[Eagle]

Stick to the topic at hand, please...

 

[eolesen]

It wouldn't surprise me if DL's targeting of Emirates has started to show up in a drop of sales originating from DXB... UA doesn't appear to have been nearly as vocal as Richard, and it's probably a benefit that IAD is a global destination, unlike ATL.

 

[WorldTraveler]

possible but the sheer increase in capacity between the US and DXB operated by EK including in markets where DL is strong is CERTAIN to have shifted share. most of DL's top 10 destinations from DXB 5 years ago now have nonstop EK service.

Remember DL carried a lot of traffic from IAH to DXB on its ATL-DXB flight which carried the same flight number from IAH-ATL-DXB. same trend with IAH-LOS over ATL.

When UA started DXB service, DL's share of the IAH-DXB market dropped significantly.


Those are facts, not speculation.

 

[jcw]

Where is the list of DL TATL flights being reduced for the winter?

 

[WorldTraveler]

Not related to this topic but feel free to start one if you would like.

I might also suggest that airlineroute.net is a good source of worldwide schedule change info.

They do provide a summary of the largest carriers' global networks showing changes.

 

[700UW]

As does Airliners.net, lol

 

[WorldTraveler]

the difference is that airlineroute provides schedule information without the commentary.

a.net is filled with posts that are nothing but wild speculations not based on any factual evidence. Anywhere.

if that is your thing, there is a place for it.

 

[jcw]

It's funny - research is done on a site no one else here would know exits (sarcasm) - however one has time to find something that looks negative to AA but can't offer a balanced view - very interesting analysis

 

[WorldTraveler]

no need for sarcasm.

the site EXISTS and many people know it.

I offered the balanced objective assessments for both schedule issues; neither are knocking anyone.

let's recap one more time regarding THIS issue: DL is reducing ATL-DXB. This is not the first year that DL has not flown ATL-DXB on a daily basis thruout the winter. DL has noted that the growth of the ME3 is affecting its performance on the route. DOT data shows that the majority of DL's top O&Ds to DXB just 5 years ago now have nonstop EK service. Those are facts and they aren't personal.

 

[eolesen]

It's funny - research is done on a site no one else here would know exists

Uh, you'd be wrong -- airlineroute.net a site owned and published by UBM, and thousands of people in the industry follow it, as do dozens of people who wish they hadn't taken a buyout and were still in the industry...