SF Gate: Delta pulls back on expansion plans for Song

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This article was sent to you by someone who found it on SF Gate.
The original article can be found on SFGate.com here:
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/02/05/f=
inancial0340EST0014.DTL
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Thursday, February 5, 2004 (AP)
Delta pulls back on expansion plans for Song



   (02-05) 00:40 PST ATLANTA (AP) --
   Launched in April as part of a plan to return Delta Air Lines to
profitability, discount airline Song's cross-country expansion has been
put on hold while its struggling parent company seeks other ways to cut
costs.
   Song, designed to give Delta an answer to such low-fare alternatives as
JetBlue Airways and AirTran, based its business on flights from the
Northeast to Florida, but had been expected to add cross-country routes
from New York.
   Instead, Delta's new Chief Executive Gerald Grinstein is taking a second
look at those expansion plans while the company continues to seek wage
concessions in its ongoing talks with its pilots union. Company officials
say the review of plans for Song is expected to be completed by June.
   Delta, which lost $1.3 billion last year, has laid off 16,000 employees
since the 2001 terrorist attacks. Grinstein says wage cuts are necessary
to help the airline return to profitability.
   Delta, the nation's third-largest airline, expects to record a loss of up
to $350 million in the first quarter of 2004, the company's chief
financial officer, Michele Burns, said last month.
   Delta announced Song would add two new daily flights from JFK to Fort
Myers, Fla., but Song was not included in new plans for Delta's expanded
West Coast service and leisure destinations in Puerto Rico and the
Dominican Republic.
   Song uses Delta pilots and provides such perks as leather seats and
in-flight entertainment. It cuts costs with shorter aircraft turnaround
times at airports.

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Copyright 2004 AP

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