OTHER NEWS - Feb. 21, 1994

Delta Said to Eye No-Frills Service: The No. 3-ranked U.S. airline is considering the option for routes under 600 miles as a way of meeting competition from low-cost rivals such as ValuJet Inc., the Atlanta Journal-Constitution reported. The newspaper said Delta’s strategic planning director, Hiram Cox, is putting together a theoretical no-frills plan. The no-frills concept has led the carrier to inform new flight attendants that they must be willing to work in any such operation. The idea would be to cut costs enough on short routes to ensure that Delta can still make money while charging fares as low as ValuJet’s or those offered by Continental Airlines’ CALite. The newspaper noted that while Delta already is matching the fares of no-frills rivals, the tactic is likely to cause a drag on the airline’s finances unless costs also are brought down.