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Delta soon to unveil low-fare airline

From Patty Davis

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WASHINGTON (CNN) -- Delta Airlines said it is getting ready to go head-to-head with low-fare airlines, whose successful growth has driven down fares of the larger carriers.

While it already operates the low-fare Delta Express, Delta will soon replace it with a new low-fare airline -- "an innovative kind of product that will help us better compete with the low-fare carriers out there today," said Delta spokeswoman Deanna Baker.

At a time when the full-service airlines are hemorrhaging cash and racking up major losses, low-fare carriers, most notably Southwest Airlines, are turning profits.

Time Magazine reported the new carrier will be named "Song." Baker, who would not confirm the name, said an announcement could come this month or next.

The new start-up airline would be a Delta subsidiary, and Delta would keep its current full-service operations separate, Baker said.

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