COUNTER INTELLIGENCE:
The Beginning of the End for Song
Delta Air Lines on Wednesday announced a package of new routes and terminal upgrades for its hub at New York's Kennedy Airport and even the most obtuse observer couldn't help but notice how there was almost no mention of Song, Delta's low-fare entry that was created to fight JFK-based JetBlue Airways. Most noticeable was Delta's decision to launch new service on three existing JetBlue routes: Kennedy to San Juan, Denver and San Diego. But Song will not be flying its one-class, 199-seat Boeing 757s on those routes. In fact, with the exception of one additional JFK-Florida route, Song's expansion has been grounded. Song president John Selvaggio in November promised an imminent announcement of a big Song initiative and Delta had been finalizing plans for a huge Song soiree in New York. The party was even meant to include an appearance by New York mayor Michael Bloomberg. But Gerald Grinstein, who took control of Delta on January 1, killed Song's plans. "You looking at the beginning of the end of Song," one Delta executive told me. "The numbers are miserable and Gerry's made it clear that he won't spend another dime until and unless we can prove there's a chance for a profit."
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