FlyerTalk Forums - View Single Post - Chapter 11 Now rather than Later
View Single Post
Old Sep 12, 2005, 7:55 pm
  #44  
HeathrowGuy
Suspended
 
Join Date: Jun 2005
Programs: Continental Gold Elite, United Premier Executive
Posts: 6,766
Describing DH as a "fare-dumping parasitic distortion" is not vitriol but rather a straightforward assessment of the effects of their pricing/capacity behaviors upon the market.

Like National Airlines a few years back, DH floods already-saturated markets with capacity at unsustainably low fares. Indy Air loses by having negative profit margins that would likely get a legacy airline CEO shot in broad daylight. Competitors that have to deal with DH's incursion into their market segments suffer by having to match the firesale fares and add capacity to now-overserved routes. Customers lose once the competitors redirect capacity away from other markets to compete against the incursion (e.g., CO pulling 735s from other markets to run EWR-IAD flights last year), and by having the legitimate players weakened generally. In the end, nobody will profit from the Independence Air experience except the attorneys.
HeathrowGuy is offline