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Delta to put Song expansion plan on hold-WSJ=20
=09
=09
Reuters <http://money.excite.com/img/logo_reuters.gif> =09
Thursday February 5, 1:57 AM EST=20
NEW YORK, Feb 5 (Reuters) - Delta Air Lines (DAL
<http://money.excite.com/jsp/qt/full.jsp?time=3D0&symbol_search_text=3DDA=
L>
) will put a much-anticipated expansion of its low-cost carrier Song on
hold as it looks for more ways to cut costs company-wide, the Wall
Street Journal said on Thursday.
The No. 3 U.S. carrier had planned a January cross-country rollout for
Song from New York, in a bid to take on JetBlue Airways Corp. (JBLU
<http://money.excite.com/jsp/qt/full.jsp?time=3D0&symbol_search_text=3DJB=
LU>
) and other low-fare rivals.
The plan has been shelved on orders from new Chief Executive Gerald
Grinstein, the paper said, citing company officials.
Atlanta-based Delta has announced the launch of a full-scale review of
the entire business, with completion targeted by June.
Last week, Delta unveiled a major expansion out of New York's John F.
Kennedy International Airport. It was announced that Song would add just
two new daily flights to Fort Myers, Florida, in May. Delta's mainline
service will get added flights to Denver; San Juan, Puerto Rico; Santo
Domingo, Dominican Republic; and, San Diego.
The Wall Street Journal quoted John Selvaggio, president of Song, as
saying the low-cost carrier's role may change after the review. "(I)t
may be larger, it may be smaller. It's not really decided," he said.
Delta representatives could not immediately be reached for comment.=20
=A92003 Reuters Limited.
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