Song to fly JFK-ATL

[AAG2000]

http://biz.yahoo.com/prnews/030306/atth003_1.html
This seems like a questionable strategy. I thought the whole idea was to keep Song away from Atlanta...at least at the beginning. Maybe once Song is well established and has won passenger acceptance on leisure routes, then a similar product could be deployed throughout the rest of the domestic network. But suddenly what seemed like a good idea is starting to lose focus--there is a real risk that this Song service will cannibalize the LGA- and EWR-ATL flights that are aimed more at business travelers. Then again, maybe they figure that JetBlue is bound to launch JFK-ATL sooner or later, so better to get a foot in the door now.
In any event, this press release is targeted squarely at both AirTran and JetBlue--note the emphasis on LA-area service. It will be interesting to see if JetBlue responds to AirTran''s ATL-LAX service (and to DL''s announcement) with a JFK-ATL route, for an all-out three-way battle on two fronts. I have a feeling Neeleman might want to sit this one out for the time being, though...

 

[7.5victim]

It'll be interesting to see what happens to pricing on all DL flights JFK-ATL. Will they be able to keep a revenue premium on the mainline flights? Doubtful. Looks like DL is eating it's own. B6 will come into the market eventually, and now they'll run their flights at times opposite Song, and further cannabalize the DL revenue.

 

[DLFlyer31]

[blockquote]
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On 3/6/2003 9:00:30 AM 7.5victim wrote:

It'll be interesting to see what happens to pricing on all DL flights JFK-ATL. Will they be able to keep a revenue premium on the mainline flights? Doubtful.
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[/blockquote]

But the mainline planes that fly ATL-JFK only do so to feed the international connections at JFK, so Song's impact is minimal.

 

[Falco]

[blockquote]
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On 3/6/2003 9:00:30 AM 7.5victim wrote:

It'll be interesting to see what happens to pricing on all DL flights JFK-ATL. Will they be able to keep a revenue premium on the mainline flights? Doubtful. Looks like DL is eating it's own. B6 will come into the market eventually, and now they'll run their flights at times opposite Song, and further cannabalize the DL revenue.
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[/blockquote]

This is exactly why most reasonable analysts hate the idea of a LCC within and airline. I can't think of a worse idea than this.

 

[winedndined]

This is exactly why most reasonable analysts hate the idea of a LCC within and airline. I can't think of a worse idea than this.
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"reasonable analysts"......there's an oxymoron if I ever heard one.

 

[pk45cu]

I like this. I'd like to see DL go the full way and transmogrify into Song. Use Song-type 757s/737s/MD-80s on major ATL routes to BOS, NYC, PHL, DCA, ORD, LAX, SFO, ORD, DFW, etc.

If they can get the CASMs down to even the 8 cent range, just imagine the competitive havoc they can do vs. AA, UA and CO?

 

[phllax]

Song on ATL-JFK makes sense to me. I think they realize that the serious business travelers are going to fly into LGA or EWR.

 

[KCFlyer]

[blockquote]
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On 3/7/2003 120 PM phllax wrote:

Song on ATL-JFK makes sense to me. I think they realize that the serious business travelers are going to fly into LGA or EWR.
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[/blockquote]

Hmmm - more legroom, considerbly lower price, a little more cabfare into Manhattan. The not-so-serious business travellers might think twice about which airport they fly into.

I had a thought on the "airline within an airline" concept last night. If I were Joe Billionaire, and I was able to go to the desert and pick up 36 planes at fire sale prices, and tell the world that I was starting a new low fare carrier that would pay employees the same rate that is being paid to Delta Airlines employees, and that I would be operating 144 daily flights within 6 months - all at a time when the airline industry is in the pits and war is immenent - I'd be called crazy as a loon. But when an airline that is experiencing record losses annouces the very same thing, it's supposed to stem the flow of red ink...What am I missing here?

 

[Busdrvr]

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On 3/6/2003 9:00:30 AM 7.5victim wrote:

Will they be able to keep a revenue premium on the mainline flights? Doubtful. Looks like DL is eating it''s own.
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The revenue premium enjoyed by "hub" airlines is derived from connecting traffic. DAL will match jblu on the o&d traffic, but make a revenue premium on that guy going to the big apple from Mobile Alabama. Song may even garner a revenue premium when compared to 737-200 or maddogs on equivilent routes. If Dave wasn''t spending sleepness nights worried about song, he wouldn''t be talking so much about it.

 

[Speedbird]

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[Busdrvr]

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[luv2fly]

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[BillLumbergh]

Let''s return back to the topic. Thanks.