Originally Posted by
Extenda
I asked this in another NAI thread, just curious if anyone had any different thoughts. The legacies are making a ton of money, so why not just temporarily start competing service on the NAI routes with 757/767 for a lower cost ticket and eat the minimal loss? I am sure they can take the hit for a few months. Is that legal? feasible? why or why not?
Well for one the AA CEO and higher level execs are paid mostly in stock and their responsibility is to the shareholders. Dumping seats into a market would make the stock price decline and they'd make less money in the short term. Most of these management teams are short-sighted and not interested in taking a loss now to maybe pay off in the future.
Sucks for us who have 35 years left. I think we can check the international ULCCs as long as we don't lose cabotage protections.