Citing overcapacity on U.S. routes to the Middle East, Delta
will terminate its lone nonstop service to the Gulf region.
Delta will discontinue its flights between Atlanta and Dubai
on Feb. 11.
“The 777 aircraft used to operate ATL-DXB will be redeployed
to other transatlantic markets where it can compete on a level playing field
that’s not distorted by subsidized state-owned airlines,” a Delta spokeswoman said.
The announcement comes as Delta, working with American and
United, is lobbying the Obama administration to cap routes to the United States
for Gulf carriers Emirates Airline, Etihad Airways and Qatar Airways. The Gulf
carriers, say the major U.S. airlines, have received $42 billion in government
subsidies since 2004, giving them an unfair advantage in the international
aviation market.
According to Delta, from 2008 to 2014, approximately 11,000
daily seats were added between the U.S. and Dubai, Doha, and Abu Dhabi. More
than 95% of that capacity increase is flown by Emirates, Qatar and Etihad,
Delta said. The cessation of Delta's Atlanta-Dubai route will leave United's
daily Washington Dulles-Dubai service as the only route between the U.S. and
United Arab Emirates city that is operated by a U.S. carrier.
Despite Delta's explanation for canceling its Atlanta-Dubai
service, a Reuters story in August noted that months earlier the airline had
said that cuts in international capacity were a response to the strong dollar,
which has hurt purchasing power for foreign travelers, and to falling oil
prices, which has hit the Gulf and other major oil markets.
Kevin Mitchell, chairman of the Business Travel Coalition,
which has pushed hard against the effort to stunt the Gulf carriers’ expansion
into the U.S., noted Wednesday that Delta faces no direct competition on its
Atlanta-Dubai route, which has been flying at 85% capacity.
Delta's announcement about the route came one day after the
carrier announced that it would withdraw from the lobbying group Airlines for
America (A4A) in April. Delta cited A4A's lack of support for its fight against
the Gulf carriers as one of the reasons it is leaving the group.