If Song does succeed in eliminating Jetblue, Delta will shut down Song and the cost of a ticket will increase a couple hundered percent because Delta did what it wanted to accomplish.
On the contrary, 777d, I fully believe that if Song is successful, DL will examine what other leisure and low-yield, high-frequency markets can better support that product than their mainline service does.
This will enable DL to do a few things:
1. Avoid market share erosion to other LCCs.
2. Avoid carrying low-yield leisure traffic over their hub network.
3. Enable the hub network to be fine-tuned to better serve the network traffic that commands a higher yield.
The public now has this somewhat unrealistic perception that they should never pay more than $299.00 one way for anything, which was created by the "Big Six" attempting to compete with the LCCs for the price-sensitive travelers. The problem was that they were utilizing their hub and spoke network to provide this service, directly alongside or within their mainline product.
Since the mainline network product has an inherently higher cost structure than the point-to-point LCCs do, it's highly uneconomical to carry these leisure fare travelers over the mainline hub network. This is where ideas like Song come in.
You identify the markets that demand and command LCC service that coincide with your traditional markets. You then have your separate but wholly-owned LCC entity start high-frequency service over those point-to-point routes, such as JFK-MCO, JFK-FLL, LGA-FLL, etc.
The result is a VERY high aircraft utilization that isn't dependent on hub traffic, meaning your CASM is extraordinarily low. That enables you to carry the "I won't pay more than $299.00 one way, EVER," crowd and still make money.
It also gets that same crowd off your more expensive mainline network service, allowing that to be better aligned to higher-yield traffic, like the customer flying BOS-SHV.
Bottom line? Assuming Song is a winner, expect to see it and other wholly-owned copycats plying many of the routes where LCCs have been cherry-picking customers from the "Big Six."
"In this present crisis, government is not the solution to our problem - government IS the problem." - Ronald Reagan
Comments made here are my own and are not intended to represent the official position of Alaska Air Group