Dave Neeleman says Song won''t work

Aug 20, 2002
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Valhalla
www.usaviation.com
(from page 42 of current Aviation Week issue)
Song...apparently is shooting for operating costs less than 8 cents per ASM. If Song achieves 8 cents and if its yield equals Delta Express'' 8 cents per revenue passenger mile, it would need a 100% load factor -- selling every seat on every flight -- to break even.
David doesn''t sound too worried about this ''airline within an airline'' concept, does he??
 

tw841

Newbie
Nov 16, 2002
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I would like to think that Song would work, but essentially, the only thing Delta is doing to bring costs below mainline is fly the planes longer hours. Unfortunately, thats not really enough.
 

Falco

Member
Oct 29, 2002
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Actually, flying aircraft longer hours is a big part of the solution, but the question is, why do you have to create a seperate airline to do this?
 

wings396

Veteran
Aug 20, 2002
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[blockquote]
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On 3/16/2003 12:42:56 PM Falco wrote:

Actually, flying aircraft longer hours is a big part of the solution, but the question is, why do you have to create a seperate airline to do this?
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[/blockquote]
So that the company can create another work group with lower wages and different work rules. From what I have heard Song will not share any of mainline's facilities such a counters and gates. If this does work, look for a large part of mainline to be shifted over to Song in the future.
 

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