NYTimes.com Article: Delta Unveils New Low - Fare 'Song' Airline

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Delta Unveils New Low - Fare 'Song' Airline

January 29, 2003
By REUTERS






Filed at 9:27 a.m. ET

ATLANTA (Reuters) - Delta Air Lines (DAL.N), moving
aggressively to woo cost-conscious customers, on Wednesday
unveiled a new low-fare airline named ``Song'' that will
fly some of the same routes as low-budget rival JetBlue
Airways Corp. (JBLU.O) and offer many of the features
JetBlue made popular.

Delta's new offshoot, which will offer one-way fares
ranging from $79 to $299, will operate flights between the
Northeastern U.S. and Florida starting in April.

Delta hopes Song will lure travelers looking for cheaper
tickets and trendier service away from low-cost airlines,
which have siphoned off Delta passengers in the growing
market.

Major U.S. carriers are struggling to win customers back
from lower-fare, profitable airlines like Southwest
Airlines (LUV.N), JetBlue and, particularly in Delta's
southern U.S. markets, AirTran Holdings Inc.Delta, the No.
3 U.S. air carrier, has especially targeted famously loyal
JetBlue customers with its new venture. Song, headquartered
in Atlanta, will run along some of the same New
York-to-Florida routes as New York-based JetBlue, offering
the in-flight live satellite television pioneered by
JetBlue.

Delta said Song airplanes will also have personal
touch-screen monitors, pay-per-view, an MP3 audio library
and in-seat Internet connections.

The new airline will fly Boeing 757s with 199 coach seats,
starting with one airplane for its April 15 inaugural
flight and adding another plane each week for 36 weeks.
Song will eventually fly 144 flights daily between Boston,
Hartford, Washington, DC, all three New York airports, and
four Florida cities -- Orlando, Fort Myers, Tampa, and Fort
Lauderdale.

Delta said it would keep Song's costs low by turning its
airplanes around quickly, employing fewer flight attendants
and using its planes for 13.2 hours each day.

John Selvaggio, Song's president, said its lower costs
would let it succeed in the same business in which other
major U.S. airlines failed.

But analysts have said Song's costs will probably still be
higher than those at low-fare rivals, because it has more
expensive employees and bigger planes.

Song will replace Delta's ``Delta Express'' unit, and
should account for about 10 percent of Delta's total
capacity in its first year of operation.

http://www.nytimes.com/reuters/business/business-airlines-delta-song.html?ex=1044851577&ei=1&en=65cc074157fa7972



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