Originally Posted by ByrdluvsAWACO
I thought "shrinking to profitability" was never a good business plan. If AA(or UA for that matter) reduces their capacity, what's stopping one of the the LCC's from stepping in and increasing service?
Not all routes are profitable for LCCs. Majors use profitable routes to subsidize some unprofitable routes to be able to have a good route footprint which makes getting corporate travel, FFers, etc., easier. Same thing with frequency on certain routes even though the planes fly half full because of the regular frequency.
Now they are not in a position to do so. Both the scenarios above are candidates for cuts.