This article from NYTimes.com has been sent to you by psa188@xxxxxxxxx /-------------------- advertisement -----------------------\ THE DREAMERS - IN SELECT CITIES FRIDAY Set against the turbulent political backdrop of 1968 France when the voice of youth was reverberating around Europe, THE DREAMERS is a story of self-discovery as three students test each other to see just how far they will go. THE DREAMERS will be released uncut with an NC-17 rating. Watch The Dreamers trailer at: http://www.thedreamers.com \----------------------------------------------------------/ Delta Scales Back Plans for Low-fare Airline February 5, 2004 By MICHELINE MAYNARD Delta Air Lines is scaling back plans for Song, its low-fare airline, as it conducts a complete review of its operational structure, company officials said yesterday. In an interview, Song's president, John Selvaggio, insisted the year-old airline can play a key role as Delta battles other low-fare airlines, like Southwest and JetBlue, for passengers on the Eastern seaboard and elsewhere in the country. However, the airline is studying the future of Song under an extensive re-evaluation of its operations that was ordered by its new chief executive, Gerald Grinstein, who assumed his job on Jan. 1, Mr. Selvaggio said. The airline is striving to cut costs and is pushing its pilots union to grant concessions so that it can keep pace with lower labor rates at other airlines like American and United. Song, which cost Delta $65 million to develop, was started last April after much fanfare as an airline-within-an-airline, meant to appeal to passengers who have been defecting in droves from major carriers in search of cheaper tickets. Delta configured 36 Boeing 757 jets, with 199 seats each, to fly route routes from New York to Florida and elsewhere. Last year, low-fare airlines carried 24 percent of all passengers in the United States, according to the Department of Transportation, and that figure is expected to climb again this year as new low-fare carriers begin service and existing carriers expand. In particular, United Airlines will start its own low-fare carrier, named Ted, next week, with service from Denver to a series of cities in the west and in Florida. Ted has been seen as United's effort to keep pace with Delta and its other low-fare rivals. However, Delta for now is not carrying through with previously announced plans to expand Song service that it had planned to put in place this year. Although Delta said last week that it would invest at Kennedy Airport to expand its service there, it announced only two new flights for Song. By contrast, soon after it announced the new carrier, Delta said it hoped Song eventually might replace Delta Express, its regional carrier flying to smaller cities. Meanwhile, Delta plans to eliminate three Song flights from Washington Dulles airport by April, the trade publication Aviation Daily reported last night. Song only began flying from Dulles to Orlando in September. Aviation Daily said the Song planes instead will be used on Delta flights from New York to Fort Myers, Fla. In the interview, Mr. Selvaggio said Delta had originally envisioned Song as a defensive measure to keep from losing passengers to other carriers. But he said it could be an offensive weapon as well, aimed at passengers who prefer direct flights to the connections that are the norm for travelers on Delta. ``What Mr. Grinstein wanted to do was undertake a strategic review'' of the kind of service the airline would provide, Mr. Selvaggio said. He said routes would be examined to determine, ``Is it Song or is it Delta? Going forward, we want to have a strategy that makes sense.'' http://www.nytimes.com/2004/02/05/business/05WEB-SONG.html?ex=1076991086&ei=1&en=d4eb6c422906708d --------------------------------- Get Home Delivery of The New York Times Newspaper. Imagine reading The New York Times any time & anywhere you like! Leisurely catch up on events & expand your horizons. Enjoy now for 50% off Home Delivery! Click here: http://www.nytimes.com/ads/nytcirc/index.html HOW TO ADVERTISE --------------------------------- For information on advertising in e-mail newsletters or other creative advertising opportunities with The New York Times on the Web, please contact onlinesales@xxxxxxxxxxx or visit our online media kit at http://www.nytimes.com/adinfo For general information about NYTimes.com, write to help@xxxxxxxxxxxx Copyright 2003 The New York Times Company