Delta extends SimpliFares

Airline Industry Information, Jan 5, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

Delta Air Lines (NYSE: DAL) has expanded its SimpliFares to all 48 continental US states.

The extension of the new fare structure reportedly means that fares may be up to 50% cheaper. The SimpliFares are part of a transformation plan announced by the airline in September 2004, Delta said.

According to the airline, under SimpliFares there is no fare higher than USD499 one-way in economy or USD599 one-way in first class. The fares are only available for purchase on delta.com or from a travel agent. Delta has also reduced the ticket change fee from USD100 to USD50 and has removed the Saturday-stay requirement.

The lower fares have been on trial in Cincinnati since August last year.

Northwest Airlines (Nasdaq: NWAC) responded to requests for a comment with a statement saying that the airline believes that 'fare simplifications' of this sort are revenue negative. As a result of this, Northwest said that it expects such an initiative, if it becomes general, to immediately adversely and significantly affect industry revenues.

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