Fare hikes are all well and good, but fares drop too. The government isn't too fond of collusion... just ask Crandall. So now everyone takes a $180,000 pay cut when fares go down?

I'm much more in favor of semi-regulation to allow a fixed minimum price per seat mile. This would stop any and all undercutting whereby a customer is won via the company losing money initially. (Or in simpler terms no airline could charge less than it costs them to fly there.)