Delta's Song readying New York expansion

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Delta's Song readying New York expansion  =

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Tuesday November 18, 3:43 PM EST =


By Julie MacIntosh

NEW YORK, Nov 18 (Reuters) - The skies over New York could turn a bit gre=
ener next year.

Delta Air Lines Inc.'s (DAL) lower-cost offshoot, Song, plans to signific=
antly expand in the New York City area next year, bringing more of its li=
me-green airplanes directly into the operational heart of New York-based =
rival JetBlue Airways Corp. (JBLU).

Song already flies out of all three New York metro area airports, mainly =
to leisure destinations in Florida.

Because Song operates as a unit of No. 3 U.S. airline Delta, it can use g=
ates and flight slots already held by Delta, which has cut back on flight=
 frequencies to survive the travel slump along with the rest of the indus=
try.

John Selvaggio, Song's president, said at an appearance on Tuesday in New=
 York that Song's new service out of the area would run to the western an=
d southern United States. He would not provide additional information, ex=
cept to say he felt there was still untapped New York passenger capacity =
to reach.

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JetBlue, the groundbreaking low-cost carrier that lures travelers with le=
ather seats and live television, has been in continuous expansion mode si=
nce its birth more than three years ago, and it ordered 65 Airbus airplan=
es with an option for 50 more back in April.

Selvaggio, who launched an array of barbs at JetBlue in his speech, said =
the number of seats filled on Song's flights has averaged in the 70 perce=
nt range since Song's mid-April launch.

He was happy with that load factor given Song's youth, but hoped it would=
 hit the low 80-percent range within a year.

Song does not break out its results separately from Delta's, citing gover=
nment regulation, but Selvaggio said the unit is "doing well enough that =
it says we're going to continue on."

Selvaggio said in a recent interview that Song was looking to take on mor=
e Boeing 757 aircraft from its parent to expand its fleet, which currentl=
y sits at 36 jets. =



=A92003 Reuters Limited. =


Roger
EWROPS

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