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Delta Cuts Fares, Reduces Restrictions

January 5, 2005
Delta Airlines is making some long anticipated changes, signaling that the large "legacy" airlines may have learned a thing or two from their smaller, more successful competitors like Southwest and JetBlue.

Effective immediately, customers flying on Delta will pay up to 50 percent less as the airline expands its SimpliFares program, which cuts fares and reduces restrictions. The move by Delta, the nation's third-largest airline, puts price pressure on other legacy carriers, including struggling United and US Airways.

With SimpliFares, no fare -- including last-minute walk-ups -- is higher than $499 one way in economy or $599 one way in first class. Additional taxes, fees, and restrictions apply, and fares are available only for purchase on delta.com or from a travel agent.

Perhaps most attractive to business flyers, SimpliFares gets rid of the universally despised Saturday night stay to receive a lower fare.

Customers booking on delta.com can choose refundable or non-refundable tickets and realize additional savings by purchasing tickets three, seven or 14 days in advance of travel. Roundtrip purchase is required for some fares, but customers never have to stay over a Saturday night. Additionally, with SimpliFares, Delta has reduced the ticket change fee to $50 from $100.

Delta introduced SimpliFares in August 2004 in Cincinnati, its second-largest hub.

In addition to SimpliFares, Delta said it is redesigning its aircraft cabins with new brighter interiors and all-leather seats and has simplified its SkyMiles program. Delta says it is also planning to improve its meal service and is redesigning employee uniforms.

Delta says it is the first major carrier to respond to Southwest, JetBlue and other low-fare competitors, who have won over customers with low ticket prices, courteous service and a good selection of flights. Delta, which has been on the brink of bankruptcy, hopes to avoid further financial turmoil.

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