Re: Delta's Song Could Rock JetBlue

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....One of the MANY things that WILL kill 'Song', will
be the F/A's, they, being of Triangle Upbringing and
their SpoiledChildren mindset, will alienate PAX, just
because they have to work the Greyhound Bus version of
DL....

Bryant Petitt
Cumming, GA
OK, so I copy some of Charles' runtogether wording....

--- lafrance@verizon.net wrote:
> Delta's Song Could Rock JetBlue
> Lisa DiCarlo, 01.29.03, 2:15 PM ET
>
> NEW YORK - It took Delta Air Lines more than three
> years to answer JetBlue Airways' assault on its
> business in the busy Northeast-to-Florida corridor,
> but now its hand has finally been forced. Delta's
> discount carrier, called Song, will launch in April,
> but will JetBlue be singing the blues?
>
>     More on David Neeleman
>
>
> Tear Sheet
>
> Add to Tracker
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>
>     More on JetBlue Airways
>     Tear Sheet
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>
> The new Delta (nyse: DAL - news - people )
> subsidiary will mimic JetBlue (nasdaq: JBLU - news -
> people ) in that it will fly single-class planes
> direct from the Northeast to several cities in
> Florida. According to Song spokesperson Stacy
> Geagan, Delta will "gut and rebuild" existing 757s,
> "so they look and feel like new."
>
> The planes will have a mixture of paid and free
> digital services such as satellite television, MP3
> audio, video-on-demand and videogames. JetBlue
> heavily promotes its free satellite television and
> leather seats; Delta will have both.
>
> The two most important factors for the target
> audience of leisure travelers are price and
> convenience--in that order. Song's flights will run
> from $79 to $299 each way, on par with JetBlue. It's
> possible that Delta might have an edge in the
> convenience department, since it will fly out of all
> three New York airports, whereas JetBlue only flies
> only out of JFK International. Furthermore, JetBlue
> has no presence in Boston and offers service to only
> one Florida city from Washington, D.C. Song plans to
> offer service to Florida from both Boston and
> Washington.
>
> JetBlue was able to snag market share on the
> Northeast-to-Southeast routes by offering lower
> prices. But it also benefited when Delta cut back
> flights to Florida and other cities after the terror
> attacks of Sept. 11, 2001. For example, Delta had
> replaced some direct routes to Florida with flights
> that inconveniently stopped at its massive Atlanta
> hub.
>
> From a cost standpoint, JetBlue still has the edge.
> Because it was launched only three years ago,
> JetBlue does not have the long-standing
> inefficiencies of its larger competitors. For
> instance, most of JetBlue's ticket sales are made
> directly over the Internet, and it has always issued
> electronic tickets only.
>
> Like every other airline, labor is the biggest
> expense for JetBlue, but its pilots and machinists
> do not belong to a national union. For 2002, labor
> costs represented more than 40% of sales at Delta,
> compared with about 25% of sales through the first
> nine months of the year at JetBlue. Delta will not
> pay lower salaries to pilots of its new subsidiary,
> leading some to wonder whether Song can really be
> competitive on costs.
>
> "They're going to use senior Delta pilots because
> they don't want to alienate their unions," says Ray
> Neidl of Blaylock and Partners.
>
> "We are a subsidiary of Delta, and we will respect
> our contract with Delta pilots," says Geagan.
> "They're the best in the industry."
>
> Neidl says that if any company can succeed with a
> discount "airline within an airline," it is Delta.
> "They're giving [Song] a separate identity and
> already have had a moderately successful experience
> with Delta Express."
>
> Delta will spend about $65 million to launch Song,
> which will eventually replace Delta Express. Song
> will indeed have a separate identity from its
> parent. For starters, Song's Web site looks more
> like JetBlue's--that is, they're both uncluttered,
> with lots of white space and large, bright
> lettering.
>
> JetBlue executives will no doubt be asked about how
> they plan to combat Song, when they report the
> company's fourth-quarter numbers tomorrow. JetBlue,
> which went public in April, is expected to report
> earnings per share of 20 cents, up 2 cents
> sequentially.
>
> If Delta is to succeed, Song must be noticeably
> different, and it already appears to be on that
> path. But the changes inside the airplane's cabin
> should be more than esthetic. Stand in line at any
> JetBlue terminal and you're likely to hear people
> actually complimenting the airline on its service
> and generally friendly attitude of its workers.
>
> Rebuilding planes and offering direct flights will
> be the easy part. Rebuilding the total customer
> experience is what could make Song sing.
>
>
>
>
>
>
> Roger
> EWROPS


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