U.S – India sector…..American to pull out
Neelam Mathews Jan 12, 2012 American Airlines is dropping its New Delhi – Chicago route. The service to New Delhi will end March1. American's route was launched in Nov-2005 after the U.S and India signed an Open Skies Agreement. AA says it's dropping the New Delhi route based on "the historical financial performance of the route and its future outlook given the global economic climate and high oil prices … ..” Some estimates are claiming that American Airlines is losing close to $40 million on the New Delhi route- numbers that at an initial look, seem to be astronomically high. American said the cancellation is not specifically related to its Chapter 11 bankruptcy restructuring but to "normal business changes." American deployed 1771 weekly one-way seats on Delhi-Chicago O'Hare while Air India, soon to be the sole operator on the route, offers 2394 weekly seats. Air India is also reporting considerable losses on the route (although all of its in...