Delta Cuts More Capacity
Citing the global recession and the fact that international load factors have dropped five percent, Delta is cutting system-wide capacity next year by six to eight percent, including domestic capacity another eight to 10 percent and international capacity by three to five percent. The airline has already cut domestic capacity by 12 percent this year and by the end of 2009, total domestic capacity will be down and unprecedented 20 percent.
In an earlier Securities and Exchange Commission filing, Delta said domestic advance bookings are running two points higher year over year. JP Morgan Chase’s Jamie Baker indicated that domestic could outperform international next year, adding with oil at $50 per barrel, the industry could withstand an 11 percent revenue drop and still produce near-breakeven results. Oil has since dropped to $43 per barrel.
The announcement was made in a letter to employees from CEO Richard Anderson and President Ed Bastion prior to Bastion’s speech before an investment conference last week, where he indicated that the Delta/Northwest merger is expected to yield $500 million in benefits next year and $2 billion annually at completion.

Mokulele Teams with Alaska
Mokulele Airlines, which is purchasing capacity from Republic Airways Holdings, is teaming with Alaska Airlines relatively new Hawaiian service to get passengers to the outer islands. Mokulele offers daily inter-island service from Honolulu, Kapalua, Kona, Lana'i, Lihu'e and Moloka'i. Beginning in early 2009, Mokulele will also offer service to Kahalui, Maui, and Hilo, Hawai'i.
Under the partnership, Mileage Plan members will earn 500 miles for each segment flown on Mokulele, beginning on Dec. 15. Award redemption on Mokulele will be available in early 2009. To launch the new partnership, Mileage Plan members can earn double miles for travel on Mokulele (1,000 miles per segment) from Jan. 1 through Feb. 28, 2009.

SkyWest Leaves PMD
After diminishing ridership, despite a resumption of service in June 2007, United is taking its SkyWest United Express operation out of Palmdale the Palmdale Regional Airport where it offered flights to Los Angeles using the Embraer Brasilia. The service to the Antelope Valley will end December 7, the last of eight airlines that have come and gone at the airport since 1971. At the same time, Los Angeles World Airports dropped plans to use the facility to ease LAX congestion. Palmdale will take over the marketing effort to attract another airline.
With United planning to drop its Palmdale flights, officials at Los Angeles World Airports say they plan to create an Office of Regionalism to promote passenger growth at Ontario, Burbank and elsewhere. The efforts include improving ground transport at the airports including bus routes, rail lines and high-speed trains. Ontario International is expecting available seats to drop by a third owing to the recession and capacity cuts.

Southwest Wins LGA Slots
The U.S. Bankruptcy court awarded Southwest the right to buy ATA’s 14 slots at LaGuardia for $7.5 million, setting, for now, the price of a slot at the airport at more than $500,000. However, given the upcoming slot auction the Department of Transportation is planning in early January, a new slot rate for New York area airports may be set. In filing for bankruptcy, ATA valued its LaGuardia slots at $2.5 million. The acquisition by Southwest was made possible by AirTran, which leased the LaGuardia and two Washington National slots dropping its bid to acquire the slots.
The move paves the way for Southwest to operate seven daily roundtrips, much of which will likely go to Chicago Midway to replace the connecting service once provided by ATA. The acquisition is pending the approval of a Chapter 11 plan for the bankrupt carrier. ATA owes more than $705 million to creditors.

LCC Gains DCA-Akron
US Airways was awarded the essential air service from Washington National to Akron/Canton over finically troubled Midwest Airlines which would have served the Akron as part of its Washington-Milwaukee service. US Airways award provides Ohio with its only nonstop service to Washington. The Department of Transportation awarded US Airways exemptions to the slot limits which govern takeoffs and landings at National and said the carrier must begin the new service by Jan. 25. The re-allocated slots were made available when AirTran Airways ceased service between Milwaukee and National on Sept. 3.

Horizon Shuffles Schedules
In January, February and March, Horizon Air is changing flight schedules on several routes in its network to better align them with its travelers' current needs. The changing schedules include flights to Yakima, Wenatchee, Tri-Cities/Pasco, Medford, Redmond, Boise, Flagstaff and Santa Rosa.
"We never stop listening to our customers. We're always factoring in what we hear to ensure our flight schedules work well for them, whether they're traveling solely within our own route network or making connections to Alaska Airlines and our other airline partners," said Dan Russo, Horizon's vice president of marketing and communications.