These guys will eventually come around to thinking that way, but not until they have the wages of labor securely under a rock, and not until Southwest's fuel hedges run out and they begin to raise fares. Until that time, I foresee nothing but the status quo continuing (management at bankrupt carriers determining overall industry fare structures by offering their product at less than fair market value simply to generate cash flow and maintain market share). Robert Crandall nailed it in the 90's when he said: "The airline industry is constantly at the mercy of it's dumbest competitor".

Once managements industry-wide have squeezed every dime out of creditors, vendors, lessors, and labor, they will then begin to 'right-price' their product and continue to 'right-size' their airlines.

This thread is interesting, but just imagine Iran lobbing a bomb over into Baghdad or Jerusalem... How will the world look when oil is $400.00 a barrel?