The biggest problem with NK in places like DFW/DTW/ORD (which we are currently reducing) is that NK simply cannot demand a higher priced ticket. Take DFW for example, AA will simply closely match our pricing on routes we both operate. AA can do this both as a loss leader and as a subsidy where those losses can be made up somewhere else in their system. AA calls NK "The Weed" at their HQs. As a passenger shopping for a fare, when the pricing on a third party site has AA and NK closely priced, almost always a person is going to choose AA. Whether or not their product really is that much better than ours, and we know its not necessarily, a regular everyday pax would prefer travel on AA.

So where does this put NK in big metro area airports where legacy competition exist? The way to fill the plane is to lower the price. It comes as no surprise that NK would simply rather NOT compete with a legacy or larger airline where they don't have to. So we do legs that legacies either do not serve or are underserved.

SW and B6 do not have the same issue. They both have products that consumers view in a positive light. They can demand a higher ticket price and people will fly them. SW has the advantage of controlling more markets than any other airline, by far. SW has created economies of scale all over the US along with tremendous barriers to entry in most of those markets. These economic principles are the exact reason why F9 and B6 covet NK. I think B6 converts better than F9 because the product is better. Cheap isn't always best, certainly not in lowering ticket prices from the top 4.

It's unfortunate, but it appears that the large metro markets that we have bases will continue to see reduced flying and reduced crews to match. It's just a different model our company is adapting to. Sadly.