This is a doomed airline. FACT: You cannot make a successful low cost carrier as a branch off of a major carrier. Just look at the past and all of the failed low cost carrier start ups by major carriers here in the US.
Your "fact" is actually not factually correct, at least if you intend to lump Song in there.
First off, Delta Express WAS successful. Why? Because it was very limited in its scope, and there was little blurring of the lines between DL
Mainline and Express. Customers knew they were getting the Express product, and not to expect full-service mainline frills.
Secondly, Continental Lite and MetroJet failed because the mainline and the LCC "airline within an airline" were too-closely aligned for customers to tell the difference. The products were different, but the packaging wasn't different enough for the customers, causing brand identity problems. Also, CO
and US were using mainline employees at mainline wages to carry the MetroJet customers. That was inefficient and costly.
Delta has made Song a separate brand in and of itself, and has taken great pains to distance themselves from this new LCC so the customers will NOT see a blurred line between the two. Also, DL
is not using mainline employees at mainline wages, save for the pilots (thanks to contract language). DL
will realize a significant cost savings on labor where US and CO
Does this ultimately mean that Song will be profitable? No, but it does mean that they've got a vastly different business model than US and CO
's airline-within-an-airline concepts were, with far greater flexibility.
They've got a far better shot at being successful than any other concept so far.
"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