Chris Bebout

DELTA SCRUBBING CAIRO ROUTE

The Atlanta Journal-Constitution
Delta Air Lines has scrubbed plans to resume its route from New York to Cairo, after suspending the service in February amid the revolution in Egypt.

Delta is also suspending its flights from New York to Amman, Jordan as of June 1. The cuts are part of the airline's efforts to adjust to higher fuel costs by cutting its trans-Atlantic flight capacity by 4 percent. Delta estimates its fuel costs will increase by $3 billion this year compared with 2010.The airline had previously planned to resume the service, but has canceled those plans due to weakness in demand, according to Delta spokesman Trebor Banstetter.
Delta's joint venture partners Air France and KLM will continue to fly to Amman and Cairo via Paris and Amsterdam, and Delta said it is contacting customers to rebook them.


As we see Delta Airlines for a short period of time stopped the Travel from New York and other major Airports to Cairo because of all the things that were happening over there. The top guns in Delta discussed this choice and kept the route disconnected. Seeing that they made this route not com back the demand for this travel has decreased meaning demand has gone down. Also even though the cost of fuel is up by 3 billion they have lost a lot of money because of it. Also by cutting the the flights from other trans-atlantic flight it made this route more cosumer friendly.
The Analysis of this route or happening is that demand has fallen, input fell, making Delta earn lose a profit in its choice of adding this route to Cairo. The fuel cost rose 3 billion just from this route when all other trans-atlantic routes didn't have an affect on this. The input for this flight was hurting Delta and not making them able to achieve a higher income or profit with this flight. But they did make a business move making there partners in flight Air France and KLM will fly to Cairo still but will go through Paris and Amsterdam. This is a great move on Delta by cutting this flight because it will gave profit again and get fuel cost back down to a cheaper price.
Questions:
Is this a good move by Delta Airlines by cutting the flight to Cairo?
- Yes it is because it will be cutting the cost of fuel because the demand is not up to pair to cairo like it is in other trans-atlantic countries.
Will Delta be making a profit?
-By the looks of it Delta will be making a more increase of profit since the fuel will be cut because of Cairo route not being in route.
Is there an input or output that will be affected?
-No, not really since demand was not there, but input for travelers still trying to get there but they can still fly to Paris to get to Cairo. Cost will be lowered possibly increasing demand for other cities.