Originally Posted by
bluespoon
Isn't the whole issue here the ULCC model and that there's too much capacity with ULCCs and there needs to be a shrinking down to profitability? I hope it does happen and F9 merges with Spirit but how would that change things other than probably raise prices and add more capacity?
I think the issue is that at their current size F9 and NK are unable to provide a robust enough route network and frequency to compete with the legacies. If they can provide a compelling route network and shift to offering more premium products they may be able to start to lure passengers away from the legacies and increase revenue enough to return to profitability. Neither has the runway to achieve this via organic growth with the legacies strangling them in the crib. The ULCC model is going away.