Just to clarify, I am not suggesting anyone start up a LCC based on discount business class seating - rather, an airline that offers premium economy (I think 19wx38p seating is good enough) in a single class config with other services like AVOD, internet, perhaps one decent hot meal with a single comped beer/wine - essentially no different than what many charter companies currently offer, except with better seating and service.

I just don't see DL being able to cut their costs down enough to match a LCC without going too far with product/service cuts. I could be wrong - perhaps a rare braintrust has emerged from a company that has made a lifestyle out of bad decision making and things will actually be made to work in a way that balances product/service/price with revenue growth - but as far as getting costs down to LCC size, I think that will be very difficult to do without over compromising the product and essentially offering a flight experience that would only appeal to the budget minded.

To tell the truth, I am happy that DL is moving in this direction. Many months ago, I commented on the need to drastically downsize domestic ops, walk away from the low yield Florida traffic being crammed onto widebodies that could be used elsewhere, and moving the focus to international. I am certainly not criticizing DL for doing this, especially since it's something I asked for - but, I hope that these changes include product improvements and service quality adjustments as part of an greater overhaul of the carrier.

An international LCC might not be a threat today, but I still think any legacy carrier who thinks they can move their focus to international routes and breath a sigh of relief at their assured survival is mistaken.