Delta Air Lines announced Friday that it will end its discount subsidiary Song next year, but United Airlines says its discount subsidiary, Ted, will live on.
“Ted is profitable,” said Sean Donohue, vice president of Ted and United’s regional operation, United Express. “Song is being grounded, and Ted is growing by 20 percent.”
United started Ted in Denver nearly two years ago.
Delta chief Jim Whitehurst announced Song’s closure in a written statement Friday. As part of the carrier’s Chapter 11 restructuring, “we have the opportunity to deploy Song aircraft seasonally to more profitable flying,” he said. “We’ve learned a lot from Song and have already incorporated many of its positives into Delta.”
Donohue said Ted’s unit costs, measured in cost per available seat mile, are 10 to 15 percent below United’s.
He said Ted leverages United’s route network more than Song does, and Ted’s smaller aircraft are more appropriate for a low-cost carrier than are Song’s.
Staff writer Kelly Yamanouchi can be reached at 303-820-1488 or kyamanouchi@denverpost.com.
