I think it's horrible what AA did to Legend. It was not a matter of "competition", but a matter of putting Legend under a mound of legal papers that, in the end, put them out of business.
If AA were such a great airline they could have competed fairly. However since they knew that any airline offering service would kick their tail - they decided to put the 'little guy' out of business by keeping them in court.
Sorry to see a legitimate, real service oriented airline go away.
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Ken in Sacramento