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SGD-TOP LCC 2005
Established in 2002 and started operations in 2003. Scheduled, domestic and international, passenger, jet airplane services.
PO Box 20504
Atlanta, Georgia 30320, USA
November 2002: Delta Airlines (DAL) announces a new low-fare subsidiary, nicknamed internally as "Project Fresh Air," to focus on flights between New York (JFK) and Florida, with possible future expansion to Las Vegas, and the West Coast, using some of its 757-200's. It will be headed by John Selvaggio, President, 56. By the end of 2003, expects to use 36 757's, 199 economy (Y) passengers (PAX), replacing all of Delta Express 737's. Unit costs will be approximately -20% below those of mainline 757's and is aiming for 13.2 hours utilization/day. Will have its own dedicated website, and expects 70% of its tickets to come from its site and (DAL) reservation centers.
January 2003: Delta Airlines (DAL) names its new low-fare operation "Song."
In 4/03, New York (JFK) to Florida (757's, 199Y), 1st flight (JFK) - West Palm Beach. All airplanes will offer in-flight satellite TV, from partnership with Matsushita Avionics Systems and EchoStar Communications Corporation and its DISH Network (TM) satellite TV service to provide personal touch-screen monitors, a digitally-streamed, MP3 library, pay-per-view programming, and Internet connections.
Plans 144 daily flights with 36 757-200's (13.2 hours/day utilization).
March 2003: In 4/03, New York (JFK) - West Palm Beach, and in 6/03, (JFK) - Atlanta Hartsfield (757-200, 2/day).
April 2003: In 5/03, New York (JFK) - Orlando, Boston - West Palm Beach, Boston/(JFK) - Tampa. In 6/03, (JFK) - Atlanta.
June 2003: In 7/03, Song, Atlanta - Myrtle Beach, South Carolina, and in 9/03, Los Angeles to Orlando, and Tampa, Florida. In 10/03, New York (JFK) - Las Vegas, Boston - Las Vegas, and Boston - Fort Myers (3/day).
July 2003: Newark - Fort Lauderdale (daily). Also, Newark - Orlando. In 10/03, Los Angeles to Fort Lauderdale.
August 2003: New York LaGuardia to Tampa (2/day). Plans to add service to Fort Lauderdale, Orlando and West Palm Beach. Los Angeles to Tampa, and Orlando.
Plans by 4Q 2003 to operate 142 daily flights with 36 757's. So far, daily utilization rate is 12.7 hours (22% better than Delta's (DAL) mainline 757's).
October 2003: Las Vegas to Boston & New York (JFK) (757-200, 199 PAX, daily nonstops).
November 2003: Song (SGD) unveils "the world's most sophisticated inflight entertainment technology among single-aisle airplanes." It collaborated with Matsushita Avionics Systems Corporation and EchoStar Communications Corporation's Dish Network satellite television to develop the system, which includes 24 channels of live satellite TV, all-digital audio programming and interactive video games. Installations will be complete by spring 2004. MP3 programming, pay-per-view movies, interactive map programs and gate information will be added in the spring 2004, when new server technology is installed on the airplanes. Song began testing the new MaseFX system on 1 airplane in 10/03, and the system will be on display at the "Song in the City" store in New York City through 12/03.
February 2004: In 5/04, New York (JFK) - Fort Myers.
July 2004: Song (SGD) is the Delta Airlines (DAL) low cost subsidiary.
Parent organization/shareholders: Delta Airlines (DAL) (100%).
(T: +1 (800) 359-7664).
Domestic, Scheduled Destinations: Atlanta; Boston; Fort Lauderdale; Fort Myers; Hartford; Las Vegas; Los Angeles; New York; Orlando; Tampa; Washington DC; & West Palm Beach.
International, Scheduled Destinations: San Juan.
August 2004: In 12/04, New York (JFK) - Nassau (757-200, daily).
October 2004: John Selvaggio retires from the airline immediately to "pursue personal matters." He will be temporarily replaced by Joanne Smith, Song (SGD) VP Marketing & Customer.
+12 757-200's to be transferred from Delta Airlines (DAL).
December 2004: 1st international service New York (JFK) - Nassau.
January 2005: In summer to increase its fleet by +33% from 36 to 48 757's starting in 5/05. Will add 36 new flights through 9/05, bringing total daily departures to 176.
In 5/05, New York (JFK) - Los Angeles with 7 daily roundtrips by 6/05. In 7/05, (JFK) - San Francisco (SFO) rising to 5 daily flights by 9/05. (JFK) - Seattle with 3 daily services by 9/05. Will also add services to the Caribbean, including Aruba and San Juan.
Joanne Smith, President.
June 2005: Song (SGD) ia a Delta Airlines (DAL) low cost subsidiary operating across the north-east USA, and from Florida.
Parent organization/shareholders: Delta Airlines (DAL) (100%).
Domestic, scheduled destinations: Atlanta; oston; Fort Lauderdale; Fort Myers; Hartford; Las Vegas; Los Angeles; New York; Orlando; Tampa; & West Palm Beach.
International, scheduled destinations: Nassau; & San Juan.
August 2005: In 11/05, New York & Boston to Florida (12/day). San Francisco - Orlando (3/week), and Los Angeles - Fort Lauderdale (2/day nonstop). New York (JFK) - Fort Lauderdale (3/day), - Orlando (3/day) - Palm Beach (4/day), - Tampa (4/day). Boston - Fort Lauderdale (6/day), - Orlando (6/day), - Fort Myers (3/day).
October 2005: Delta Airlines (DAL) announced it plans to merge Song (SGD) into Delta (DAL) by doing the following: - Adding 26 first-class seats to Song (SGD)'s existing fleet of 48 Boeing 757-200 airplanes - Converting an additional 50 - plus (DAL) airplanes to two-class Song (SGD) service, complete with all-leather seating and new interiors throughout. - Expanding state-of-the-art personal digital in-flight entertainment to all 100-plus airplanes, with 24 channels of live television, 10 on-demand video channels, interactive video games and MP3 programming. - Offering this exclusive Song (SGD) service initially on all transcontinental (DAL) flights beginning fall 2006 and expanding the service to include all routes over 1,750 miles over two years. - Incorporating Delta (DAL)'s new uniforms, improved snack service and award-winning SkyMiles program to offer customers the best value in transcontinental travel. (DAL) also will add first-class sections to Song (SGD)'s current fleet of 48 757-200s, making the product more attractive to higher-yield business travelers who can use status and miles to upgrade to the front of the cabin, something they cannot do with Song (SGD)'s current one-class configuration. Song (SGD) will continue to fly as a separate brand and customers will be able to book flights until May 2006. The airplanes then will be scheduled on "high-demand routes" during the transition, replacing widebodies being transferred to international service.
Song (SGD) was launched in April 2003 primarily to recapture East Coast leisure traffic lost to JetBlue (JBL). It was expanded to transcon markets in the face of low-fare expansion into the New York - West Coast markets in 2003 - 2004 but was kept away from Delta (DAL)'s hubs, likely out of concern that yields would be diluted. Ironically, that meant low-yield leisure travelers arguably were enjoying a better inflight product, for less money, than high-value business customers.
"As part of our [Chapter 11] restructuring, we have the opportunity to deploy Song (SGD) airplanes seasonally to more profitable flying - - including our hubs - - and to further simplify our operations while expanding the great travel experience on Song (SGD) to more Delta (DAL) customers," (DAL) COO, Jim Whitehurst stated.
JP Morgan analyst Jamie Baker viewed the step as a positive for (DAL) and a negative for JetBlue (JBL). In a report, he suggested Song (SGD) will siphon "higher-yield demand from the competition." Legacy competitors also will lose out, he argued: "Passengers prefer live television and listening to 80s Classics over paying $1 for a bag of trail mix [Northwest Airlines (NWA)] or having their pillow taken away [American Airlines (AAL)]. Longer-term, legacies and LCCs alike will be increasingly disadvantaged."
April 2006: Delta Air Lines (DAL) announced it has begun bringing the 48 Song (SGD) 757s back into the mainline fleet in anticipation of this fall's launch of a "new two-class, domestic long-haul product" combining "the best of the Song (SGD) and Delta (DAL) brands, products and experiences," according to Delta VP, Consumer Marketing, and Song (SGD) President, Joanne Smith. The carrier will reconfigure the interiors from one class to two and exteriors of the airplanes during a conversion process expected to last through November. Smith said all Song (SGD) markets will continue to be served by Delta (DAL) after the transition. The company decided to fold the low-cost offshoot last October.
First class service will be re-introduced on several Song (SGD) routes, including flights from New York to California, and Seattle from May 1. The new long-haul product will feature all-leather seating, on-demand inflight entertainment and other amenities. It will be available on about 100 airplanes by 2008, including the former Song (SGD) 757s. "Song (SGD)'s ideas and innovations will continue to play a vital role in the refreshment and reinvigoration of the Delta (DAL) product and experience," the airline said.