Delta Air Lines to Discontinue Service from Los Angeles, New York to Japan; Carrier to Continue Atlanta to Tokyo Flights

Delta Air Lines has said it is making a strategic business decision to discontinue its daily, nonstop service from Los Angeles to Nagoya Japan and its six-times-per-week, nonstop service from Los Angeles to Tokyo (Narita). The flights will be discontinued on Dec. 1, 2001.

Delta also will discontinue its New York (JFK) to Tokyo service, which the airline had announced earlier it would suspend until March 15, 2002.

Delta will continue to operate its daily, nonstop Atlanta to Tokyo (Narita) flights.

Paul G. Matsen, Delta’s senior vice president-international and alliances, said, "The news for Delta and its Japan service over the past 12 months has not been good. The tragic events on Sept. 11 lead us to conclude it is better for our shareholders, employees and customers to focus our resources on those markets where we can be most competitive and realize the greatest revenue generation opportunities.

"We do not see economic conditions in both the United States and Japan becoming favorable in the foreseeable future. Delta’s forecast for the next 12 months indicates continued negative performance from these three routes. We do not discontinue service without giving great consideration to the impact on the communities involved," he said.

Delta started daily service between Los Angeles and Nagoya in April 2001, and between Los Angeles and Tokyo in February 1991. The New York to Tokyo service started on April 1, 2001, but was suspended on Sept. 11, 2001.

As a result of the discontinued service, Delta employees in Nagoya, Tokyo, Los Angeles and other locations who support the services will be affected. Delta will offer the staff in Japan a variety of voluntary programs, including leave programs and a voluntary severance package. Delta hopes that a significant portion of the employee reductions will be met through these voluntary programs. If this is not possible, then an involuntary severance program will be necessary. While certainly a last resort, Delta’s involuntary severance program is a comprehensive and generous program.

"The people of Delta are our most important asset and we value their efforts and abilities. The workforce reduction is a necessary step that Delta must take if it is going to survive," Matsen said.

In talking about Delta’s future Asian strategy, Matsen said, "Delta will focus its future growth in the Asian market with alliances relationships. Delta will continue to develop its partnerships with Korean Air and China Southern while looking at additional partnership opportunities."

Delta is a member of SkyTeam, the world’s #2 airline alliance. Other SkyTeam members include AeroMexico, Air France, Alitalia, CSA Czech Airlines and Korean Air.