PELLSTON, MI -- Friday, Delta Airlines announced they may drop flights to 24 cities, five of them right here in Northern Michigan.
The airline wants federal funding to help pay for the service they provide to smaller airports.
This could mean big changes in their essential air service markets.
Delta Airlines announced that they're going to retire one of their smaller planes, it's a primary plane that serves peloton, and that could mean changes at Pellston Regional Airport.
In an effort to save $14-million, the 34-passenger Saab 340 plane will no longer be in the Delta fleet by the end of the year. The same day they announced the plane's retirement, they also told the Department of Transportation they are looking to drop 24 money-losing flights, including five in Northern Michigan: Pellston, Alpena, Iron Mountain, Escanaba, and Sault Ste. Marie.
"it just costs them more to operate so they're looking for every possible way to save money," explains Pellston Regional Airport Manager Kelley Atkins.
Larger planes will service the airports and to offset money lost by operating them, Delta is turning to federal assistance. Pellston has operated as an essential air service airport since 1978 without the use of subsidies, and passengers fill 58.5 percent of the airline’s seats. A Delta spokesperson told me they can't afford to continue flying here without added funding and the filing was made with the DOT to trigger essential air service subsidy funding for the Pellston market.
“I'm not losing too much sleep over this one, we've never participated in subsidies to the airlines, we've always been a stand-alone, or self-supporting market," says Atkins.
Now, the ball is in the Department of Transportation’s court. The DOT will have 90 days to make their decision. They could grant increased subsidies to the smaller airports like Pellston, or bid the airline service to other air carriers. Delta says they'll wait and see.
“Delta will not make determination of whether service will be discontinued in the Pellston market until DOT responds to request. Delta needs the subsidy to cover the larger aircraft that will service airport by end of year," says the Delta spokesperson.
“Like I said before, we've always been self-sustaining with our market here, and for those reasons, I don't foresee too many ripples," admits Atkins.
According to Delta, this is just one move they've had to make in order to save money.
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(AP) - Some northern Michigan communities may soon not have Delta flights to choose from.
Delta Air Lines Inc. is looking to drop money-losing flights in 24 small cities, including five in Michigan, putting some of them at risk of losing air service altogether.
Delta says it has been losing $14 million a year on the flights, which are concentrated in the nation's midsection. Michigan cities include Pellston, Alpena, Iron Mountain, Escanaba and Sault Ste. Marie.
Some flights are only 12 percent full on average. Many are on Saab turboprop planes, which Delta is retiring. Federal subsidies help pay for flying in 16 of the cities. Other airlines can bid for those subsidies if Delta pulls out.
The airline says it will ask for federal subsidies in the other eight cities. It said it can't afford to keep flying to those cities without a subsidy.
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