Ryanair has emerged as the Continent's largest airline in terms of market value. Its success has been great news for Boeing Co. Last week Ryanair said it would increase orders for Boeing 737-800s to 125 from 103.
John Walsh, an aviation and aerospace consultant based in Annapolis, Maryland, described the trend to create low-cost subsidiaries as "monkey-see, monkey do." "I'm struggling with it," he said. "My sense is these tactics are purely defensive, but they haven't said that." Song spokeswoman Stacy Geagan countered: "We think of Song as an offensive strategy."
Song will initially have four flights and build to 144 by October 2003. It will fly along the East Coast between Boston, New York City, Washington, and Florida locations such as Tampa and West Palm Beach, quite dense routes in terms of air traffic.
Taking a page from playbooks of JetBlue and Southwest, the seats will be upholstered in leather and each will be equipped with satellite TV and digital audio. "Eventually we'll have online shopping," Geagan said.
"Delta Express used inefficient 737-200s," said Song's Selvaggio. "What Delta Express did well was to drive additional passenger traffic. If you believe you can do that with a low-cost carrier, why not optimize rather than dabble?" Selvaggio might start praying that his low-cost gospel will spread quickly throughout Delta. Otherwise, Song likely will be too little and too late to be more than a Band-Aid over a gaping wound.
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