Delta announces new low-fare airline

<br>ATLANTA (AP) _ Delta Air Lines announced Wednesday that it will create a new low-fare airline in a bid to lure budget-minded travelers from its lower-cost rivals. <br><br>The new airline, which has

Wednesday, November 20th 2002, 12:00 am

By: News On 6

ATLANTA (AP) _ Delta Air Lines announced Wednesday that it will create a new low-fare airline in a bid to lure budget-minded travelers from its lower-cost rivals.

The new airline, which has not yet been named, will be launched next year with service between the Northeast and Florida, where Delta is facing intense competition.

Company officials said most one-way fares will be between $79 and $299.

The new Delta subsidiary is aimed at curbing passenger losses to carriers such as AirTran Airways, JetBlue Airways and Southwest Airlines. Costs at all three carriers are far below those at Atlanta-based Delta, the nation's third-largest airline and the most dominant in the Southeast.

The flights will be all coach class on a fleet of 36 Boeing 757s, which can seat up to 199 people and are larger than those flown by the smaller rivals. That would help Delta reduce its per-seat costs, better emulating the discount carriers.

Former Midway Airlines chief John Selvaggio, who was named in August to lead Delta's low-fare strategy, will become president of the discount airline, the company said.