Bankrupt Delta Air Lines today said it would "merge" its low-fare Song service into domestic mainline service as part of an effort to "tap the best features" of both operations. By next fall, Delta plans to offer the revamped service, including a first-class cabin, on all transcontinental routes. That service gradually will be expanded to cover all routes over 1,750 miles.
"Song will continue to fly as a separate brand and customers will be able to book flights on Song until May 2006," Delta said in a statement.
Launched in early 2003 by a previous management team
(BTNonline, Jan. 29, 2003), all-coach Song was meant to reclaim market share from the likes of JetBlue Airways by offering low fares and to be a testing ground for new policies, processes and products. It faced initial skepticism around the industry, and even from within Delta, before CEO Gerald Grinstein gave the go-ahead for further expansion
(BTN, Feb. 7).
"As part of our restructuring, we have the opportunity to deploy Song aircraft seasonally to more profitable flying--including into our hubs--and to further simplify our operations," said Delta COO Jim Whitehurst. "We've learned a lot from Song and have already incorporated many of its positives into Delta."
Specifically, Delta will add first-class seating to 48 existing Boeing 757 Song aircraft, convert more than 50 other aircraft to two-class service and enhance inflight entertainment on 100 aircraft. It said the changes would attract business travelers and enhance revenue.
"Low-cost carriers operating within a larger carrier has never worked in the past and there was no reason to believe that it would work in the future, even though the Song product proved popular with customers," said Calyon Securities analyst Ray Neidl. "However, Delta had more success than past experiments with low-cost operations by legacy airlines in the lessons it learned on how to run a more simplified operation."
Delta said the reconfigured aircraft would be used on high-demand domestic routes, replacing many widebody aircraft slated for redeployment to international markets. That redeployment is intended to make Delta the largest operator across the Atlantic
(BTNonline, Oct. 18).