Originally Posted by
bluesky24
ULCC’s can grow in the US but will never match the market share of the big 3. The Legacy’s control all of the markets in all of the major US cities and therefore generate a revenue premium that the ULCC’s will never get. ULCC’s will also see their costs increase over time as their employee groups grow larger and negotiate better contracts and as their aircraft age. The problem is they compete on price and will struggle to increase revenue to match their increased costs. This is my opinion only
I think you have it backwards. ULCC don’t have to match the legacies or they are trying to. The legacies are trying to match the ULCC by offering basic economy and charging for the “extra” assigned seats, bags and so on.