Song…You Ain’t Goin’ Nowhere

Uncategorized February 5 2004 1 Comment

In a move that, quite frankly, is rather surprising, Delta said that it is putting on hold its plans to expand Song to a wider portion of the country. The majority of Song’s current routes are from the northeast to Florida (with a couple of exceptions). Delta hoped to roll out the low-cost, cool frills concept to a wider range of cities this year. But with Delta’s costs running something resembling amock, its CEO has asked for a 6 month review of whether Song even makes sense, something analysts have been questioning from the outset. My guess? A wider rollout of song is cancelled, and a wider rollout of Delta’s all-coach test flights from Atlanta to Houston and Kansas City are expanded (all coach, tons of legroom—36″ vs. 31″ on Continental) to lure business travelers.

In other news, Canadian low-fare, live TV carrier WestJet will be flying to the US beginning this fall. WestJet, if you don’t know, is a wildly successful low-cost Canadian carrier that was founded by JetBlue founder David Neeleman. Now that you know that the live TV part makes sense. Anyway, new longer range 737-700s will allow them to fly from Calgary to Ft. Lauderdale, Orlando and LA. The carrier, which has tortured Air Canada for many years, is currently in a fare war that has destroyed yields for both carriers.

One Response on “Song…You Ain’t Goin’ Nowhere”

  1. dayna says:

    Song is not the only one who is under review….Delta as a whole is the one who is under a strategic review until July. Song is doing great and has a wonderfully high load factor and full planes. We will see what the future holds…

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