This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Delta's Song Nearly Over

Updated from 2:18 p.m. EDT

Delta Air Lines (DALRQ)plans to shut down its low-cost Song airline next May, but said it will blend elements of the carrier into its normal operations.

Song, which operated with only coach seats, was launched in 2003 as a rival to discount upstarts like JetBlue Airways (JBLU - Get Report). Delta, the nation's No. 3 airline measured by traffic, will repaint Song's 48 narrow-body Boeing 757 jets with Delta colors and add 26 first-class seats to each one.

However, the planes' all-leather seats and seat-back digital television and video -- touches matching JetBlue's service -- will be retained. Although Song will disappear as a separate airline, Delta will continue to use the brand to describe service on long domestic flights.

Song service has won some converts among travelers, and Delta will add the leather seats and in-flight entertainment to another 50 or more of its regular planes.

After Song stops flying separately in May, Delta will deploy the planes on high-demand routes throughout its network. As it converts more planes into the two-class form it will put them on transcontinental routes. Eventually, Delta expects to have Song service on all domestic flights over 1,750 miles.

By adding first-class seats to the old Song planes, Delta will likely help the industry as a whole by reducing supply of cheap coach seats. A glut of seats last year and early this year kept pressure on fares.

At the same time, the airline could challenge rivals by putting Song amenities on more of its planes, and that potential prompted J.P. Morgan analyst Jamie Baker to downgrade JetBlue shares Friday.

"While Song aircraft will no longer be externally identifiable, Delta intends to gradually raise the in-flight entertainment bar throughout its domestic network," writes Baker, whose company does and seeks to do business with companies covered in its research reports. "Contrary to proclamations of Song's underperformance, its expansion appears to validate the product."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
JBLU $19.25 -0.57%
AAPL $124.43 -1.54%
FB $82.22 -1.18%
GOOG $548.00 -0.73%
TSLA $188.77 -0.94%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs