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Reuters
Delta Gives Details of Low-Fare Airline
Wednesday January 29, 6:19 am ET
ATLANTA (Reuters) - Delta Air Lines (NYSE
AL - News) took an aggressive step forward on Wednesday in its efforts to woo cost-conscious customers, unveiling a new low-fare airline named "Song" that will start flights up and down the East Coast in April, ratcheting up the fight with low-budget competitors.
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The new offshoot, which will use a simplified structure with one way fares ranging from $79 to $299, will replace Delta's Express unit, and should account for about 10 percent of Delta's total capacity in its first year of operation.
Delta, the No. 3 U.S. air carrier, said Song will initially fly Boeing 757s with 199 coach seats on routes between the Northeast and Florida. The company said it plans to operate 144 daily Song flights by October. The major U.S. carriers are all struggling to win customers back from lower-fare, profitable airlines like Southwest, JetBlue Airways Corp.,(NasdaqNM:JBLU - News) and, particularly in Delta's southern U.S. markets, AirTran Holdings Inc. (NYSE:AAI - News).
Song, headquartered in Atlanta, will compete directly with New York-based JetBlue, even offering in-flight satellite television. Delta said it would keep Song's costs low by turning its airplanes around quickly, using fewer flight attendants, and using its planes for 13.2 hours each day.
Delta Gives Details of Low-Fare Airline
Wednesday January 29, 6:19 am ET
ATLANTA (Reuters) - Delta Air Lines (NYSE
ADVERTISEMENT
The new offshoot, which will use a simplified structure with one way fares ranging from $79 to $299, will replace Delta's Express unit, and should account for about 10 percent of Delta's total capacity in its first year of operation.
Delta, the No. 3 U.S. air carrier, said Song will initially fly Boeing 757s with 199 coach seats on routes between the Northeast and Florida. The company said it plans to operate 144 daily Song flights by October. The major U.S. carriers are all struggling to win customers back from lower-fare, profitable airlines like Southwest, JetBlue Airways Corp.,(NasdaqNM:JBLU - News) and, particularly in Delta's southern U.S. markets, AirTran Holdings Inc. (NYSE:AAI - News).
Song, headquartered in Atlanta, will compete directly with New York-based JetBlue, even offering in-flight satellite television. Delta said it would keep Song's costs low by turning its airplanes around quickly, using fewer flight attendants, and using its planes for 13.2 hours each day.