Delta reasserts Salt Lake plans

The restructuring also includes a cap on fares

Published: Thursday, Jan. 6 2005 9:13 a.m. MST

Customers do business at Delta counters in Salt Lake City. The company is taking its SimpliFares pricing nationwide.

Tom Smart, Deseret Morning News

As part of its massive restructuring plan, Delta Air Lines introduced a new ticket pricing program Wednesday and reconfirmed its plans to beef up operations in Salt Lake City.

The new pricing program, called SimpliFares, was first introduced in the airline's Cincinnati hub last August. Based on feedback from customers, Delta chief executive Gerald Grinstein said in a teleconference Wednesday that taking the program nationwide is "part of Delta's commitment to improve the travel experience and also to produce significant savings through simpler, more efficient ways of doing business."

"Let it be clear, this is not a fare sale," Grinstein said. "This is a fundamental change to our pricing structure."

With SimpliFares, no ticket will cost more than $499 (plus taxes and other fees) one way in the coach section or $599 one way in first class.

That price excludes certain "codeshare" flights operated by St. George-based SkyWest, Northwest, Continental or Alaska airlines.

"There are lots and lots of fares that are lower than that, but what this does is ensure that they won't go higher than that," said Harlan Bennett, Delta's vice president of revenue management.

Also Wednesday, Bennett said plans are proceeding to decelerate operations at Delta's Dallas/Ft. Worth hub, which will increase traffic through Salt Lake City International Airport.

The airline announced in September that it would add 58 flights out of Salt Lake City as part of its restructuring, including 13 added nonstop destinations. Twenty-one of the 58 new flights are expected to be under the Delta banner, with the remaining 37 as Delta Connection flights.

"Dallas/Ft. Worth will officially end as a hub operation on Jan. 31," Bennett said. "At that point, we'll be transferring flights to other hubs, including Salt Lake City. We are encouraged by the bookings on the flights so far. It's too soon to tell what will happen on the revenue side at this point, but we are encouraged by the bookings."

The new nonstop destinations from Salt Lake City will include Austin, El Paso and San Antonio, Texas; New Orleans; Maui, Hawaii; and Cabo San Lucas, Mexico.

The new fare structure, in effect Wednesday, likely will help business travelers and others who buy tickets at the last minute. Not every ticket buyer will see a decrease in fares, but Bennett said the change will make buying tickets easier and more reliable for customers.

Get The Deseret News Everywhere

Subscribe

Mobile

RSS