Grounded for gas

You don't have to be bankrupt to pull down routes or park planes. Even 'healthy' carriers do it, which may be part of the point as to why they're not bankrupt. But it's happening as the cost of jet fuel forces airlines to cast a cold eye on the economics of each route and each flight.

American Airlines, the only major carrier to have avoided bankruptcy in the last 25 years, puts down more than a dozen flights as of today, the 5th of October, until the 30th of the month. American will monitor jet fuel prices and then evaluate reinstating the flights. Dan Garton, American Airlines executive vice-president, said: "Jet fuel prices have been rising even faster than crude oil prices for the last year, but it was the 39% rise in jet fuel costs in the last month alone that pushed us to make this decision."

From Dallas/Ft Worth the airline will cancel two Austin (Texas) flights and one each to Atlanta Hartsfield/Jackson, Denver, El Paso (Texas), Newark Liberty/New York, Washington Dulles, Houston Intercontinental (Bush), Kansas City, Chicago O'Hare, Toronto, and Tulsa (Okla.). The airline also is cancelling one flight each from O'Hare to Houston Intercontinental and Toronto.

Continental Airlines said it would take similar steps in the next weeks, and Delta followed suit. The Delta cuts are a temporary reaction to price spirals as Delta seeks sources to substitute for the Gulf of Mexico refineries that it used until the hurricanes hit. These suspensions, mostly on midweek days and at off-peak hours, are also to be temporary, says Delta. In one of its first steps after filing for bankruptcy protection 14 September, Delta announced a 15% capacity cut for its winter schedules.

American also announced that it will discontinue service between O'Hare and Nagoya, Japan, at the end of October because the cost of fuel made the economics of the flight untenable. Northwest, just days before it filed 14 September for bankruptcy reorganisation, cited fuel costs in its decision to end its New York-Tokyo nonstop route.