From today's Wall Street Journal
In today's Wall Street Journal:
Delta plans to drop nearly one-third of the flights at its low-fare Song unit from its schedule in September. The move is likely to fuel speculation that Song's future is up in the air as Delta struggles to cut its costs and avert bankruptcy-court protection filing.
The airline will suspend 41 of Song's 140 daily flights in September. Among the routes losing flights are Los Angeles to Tampa, Fla., and Los Angeles to Orlando, Fla., both being cut to one flight a day from the current two flights a day.
James Parker, an aviation analyst at Raymond James & Associates, said the suspensions are "a further admission that Song is not working."
Launched in April 2003, Song was formed to operate at lower costs while providing perks such as leather seats and in-flight television. Atlanta-based Delta spent $65 million to launch the airline-within an airline experiment. Low-fare upstarts such as JetBlue Airways have invaded Delta's turf along the East Coast, and Song once was headed for a coast-to-coast rollout.
Song's expansion was put on hold earlier this year as part of a review of Delta's operations under new chief executive Gerald Grinstein. One of Song's biggest supporters was Leo Mullin, Delta's former CEO, who left earlier this year.
Mr. Grinstein, in an April letter, congratulated Song's staff for achieving "operating costs that are 20% below those for mainline 757s." But he has said Song's continued existence is being studied.
In today's Wall Street Journal:
Delta plans to drop nearly one-third of the flights at its low-fare Song unit from its schedule in September. The move is likely to fuel speculation that Song's future is up in the air as Delta struggles to cut its costs and avert bankruptcy-court protection filing.
The airline will suspend 41 of Song's 140 daily flights in September. Among the routes losing flights are Los Angeles to Tampa, Fla., and Los Angeles to Orlando, Fla., both being cut to one flight a day from the current two flights a day.
James Parker, an aviation analyst at Raymond James & Associates, said the suspensions are "a further admission that Song is not working."
Launched in April 2003, Song was formed to operate at lower costs while providing perks such as leather seats and in-flight television. Atlanta-based Delta spent $65 million to launch the airline-within an airline experiment. Low-fare upstarts such as JetBlue Airways have invaded Delta's turf along the East Coast, and Song once was headed for a coast-to-coast rollout.
Song's expansion was put on hold earlier this year as part of a review of Delta's operations under new chief executive Gerald Grinstein. One of Song's biggest supporters was Leo Mullin, Delta's former CEO, who left earlier this year.
Mr. Grinstein, in an April letter, congratulated Song's staff for achieving "operating costs that are 20% below those for mainline 757s." But he has said Song's continued existence is being studied.