Originally Posted by banger
You are exactly correct. Delta did a good job fending off JB on the Florida routes with Song. It's a business decision, "how long can we lose money here while defending our turf". Unfortunetly DAL did run out of money first and declared BK. Song was losing money from the start but worked as an offensive weapon.
Must be reading your own company propaganda. Song and Delta lost $2 million a day going head to head with JB. Song, by your own CEOs words, was created to compete againist JB at a 2 cent higher CASM, never expecting a profit. JB grew over 25% on all competing routes with Song and had an 18% RASM premium. If you call that fending off another carrier then you might need to reconsider. Its stupid ideas like this by airline execs that are bleeding the airlines and the pilots to death.
Lots of sources for the numbers but here is a start in case you doubt.
http://www.mapdigital.com/jpmorgan/a.../ondemand.html