Originally Posted by
johnso29
Over capacity leads to more selection/competition. When the LCCs came to town with low pay, low longevity pilots, and good deals like no payments on A320s for the first five years, that gave them the ability to give away their products at dirt cheap prices. This results in them building a customer base, pulling customers away from the other airlines that actually charged for their product. In order for those airlines to compete with the LCCs, they had to match their dirt cheap prices and $49 fire sale fares. Combine that with greedy corporate america, and you now have the current state of the industry. It will only help to see capacity be cut, and unfortunately, to see a few more carriers go Tango Uniform. Good Luck to us all.
Are you referring to JetBlue?
I agree, legacies will lose domestic capacity and should raise fares, leaving them up to regain pricing power. Pretty difficult with SWA and JBU taking advantage of cutbacks to obtain more market share.