Originally Posted by
Bucking Bar
Which is a position I do not understand.
Reduced capacity results in mush higher unit costs for the remaining capacity. While over expansion surely means death, so does continual retreat.
As we seem to cede the point to point O&D domestic, we become nothing more than a thin network to feed our international operations.
But, that simply exposes us to a greater risk:
IMHO, shrinking is the most risky course we could take. Eventually we will run out of places to consolidate.
True, and that is why unless DAL decides to cut CVG and or MEM and ALL associated flying, the network will not continue to operate efficiently or cost effectively. Even if they do cut those two hubs(not many actual departures per day) they risk hurting the efficiency and effectiveness of the combined networks by doing so. RJ's can give market presense which was the choice de jour about a decade ago, but with fuel where it is the margin is horrible.