AC is not that stupid. Reconfiguration means a new set of products which are long overdue. It can outsell C3K on advance booking customers by emphasizing more leg room -- though this does not contribute to the bottom line all that much, and crowded back cabins alienate the business traveller who cannot "afford" a seat in the front cabin -- but it might also follow the BA route of reconfiguring aircraft to meet the demands of differentiated products and pricing. [Or take the middle ground of UA, with a few rows of truly Premium larger pitch seating which are filled accordingly, and not as these are now.] It needs to create an intermdiate near-full fare product in a middle Y cabin, or else... RootsAir had the idea down well, but could not shift the customers from AC because of the rather general Aeroplan bonuses being offered to stall any shifting of business travelers who might be attracted by the price advantage of the upstart. I also see fewer upgrade opportunities as front cabins get smaller and restrictions on fares are tightened even further.

AC's other major problem is with its staff relations, an area Milton and the boys still don't understand. Not to mention some of the unions which believe AC is a cow to be milked until it is dry.