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In Salt Lake City, Delta flight, destination cuts have not hit home -- yet
This is an archived article that was published on sltrib.com in 2008, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Last year, Delta Air Lines was clamoring to add routes from Salt Lake City International Airport. Now, because of raging fuel prices and falling passenger numbers, Delta is scrambling to cut back.

And the carrier is not alone.

Since January, Delta has announced plans to discontinue 16 routes from its Salt Lake hub and is scaling back flying to at least 16 more destinations.

Soon after Labor Day, the number of routes may have shrunk to about 90, on par with where Delta was in 2005 when it entered bankruptcy, and down from a high of 118 in June 2007.

"It's a reality check on the new world we live in of high fuel costs," said Richard Nelson, CEO of the Utah Technology Council, which promotes development of technology businesses in the state.

In addition to Delta, Jet- Blue Airways and Continental Airlines also are pruning routes locally. But the bulk of the reductions have been announced by Delta, which with its Delta Connection flying partners is the dominant carrier at the airport. By September, its Salt Lake seat capacity will be 10 percent lower than last year.

So far, there's been little public outcry, which may be a testament to Delta's aptitude for identifying routes that don't have noisy supporters, said Lane Beattie, CEO of the Salt Lake Chamber.

"We are confident that Delta is being responsible," Beattie said. "But that doesn't make the business community pleased, because the more flights we have to more locations, the easier it is for us to do our work."

Until Delta began eliminating routes, the airline touted Salt Lake as its fastest-growing hub. That appellation is no longer justified. But neither is the hub being singled out for special treatment. Across its domestic network of routes, Delta plans to reduce capacity by 13 percent by the end of this year, more than what is planned for Salt Lake. Cincinnati, another Delta hub, already is down 19 percent. Capacity at Atlanta, Delta's biggest airport operation, is off 2.4 percent.

"We still have a very strong hub here. I'm encouraged that they are keeping as many [routes] as they are," said Jeff Edwards, CEO of the Economic Development Corp. of Utah.

Destinations cut by Delta, JetBlue and Continental range in size from small airports to big cities. Many, but not all, are cities served with 50-seat regional jets that are becoming too expensive to fly - even when full. Other routes are flown by larger jets, but passenger demand is too low.

Jason Perry, executive director of the Governor's Office of Economic Development, said his office has received no complaints about the cuts. Executives and employees of local businesses are not having trouble getting to places they need to reach, he said.

That could change if the number of destinations trimmed increases much more, or if the airlines start to cut key destinations, such as Boston, New York or Los Angeles. But for now, the cuts are having little impact on the economy, Perry said.

"At some point, you start to get concerned. But there are certain flights from the state of Utah to the [rest of the] United States and other parts of the world that are still as strong as ever," he said.

Perhaps the bigger impact on reduced passenger loads is from rising ticket prices. Airlines have raised fares 14 times and tacked on 10 fuel surcharges so far this year, in addition to fees for checked bagged and other items.

"The increase in fares are certainly affecting our bottom line. We've seen an increase in prices anywhere from $175 to $300" for Regence BlueCross BlueShield employees flying between Salt Lake and the insurance company's headquarters in Portland, Ore., spokeswoman Tauni Everett said.

Regence has cut travel by 5 percent, in line with passenger reductions at the airport. Passenger counts were down 4.3 percent in May, the last month for which complete figures are available, airport spokeswoman Barbara Gann said.

pbeebe@sltrib.com

Delta Air Lines, JetBlue Airways and Continental Airlines have eliminated 19 destinations they serve from Salt Lake City. (Delta also is trimming the number of times it flies to at least 16 additional cities.)

Delta cuts:

* Bakersfield, Calif.

* Bellingham, Wash.

* Birmingham, Ala.

* Des Moines, Iowa

* Durango, Colo.

* El Paso, Texas

* Fargo, N.D.

* Fayetteville, Ark.

* Memphis, Tenn.

* Milwaukee

* Nashville, Tenn.

* Pittsburgh

* San Luis Obispo, Calif.

* Sioux Falls, S.D.

* Yakima, Wash.

* Yuma, Ariz.

JetBlue cuts:

* San Francisco

* Burbank, Calif.

Continental cut:

* Newark, N.J.

Number of destinations cut from Salt Lake City:

Passenger numbers at SLC's airport:

-4.3%

May 2008: 1,727,252

May 2007: 1,804,235

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