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Old Jan 31, 2008 | 3:58 pm
  #27  
sbm12
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Originally Posted by ciaobel
I am not under-estimating anything, both are huge. My point was that both CO and JBLU changed way of doing business, and JBLU bears more risk since it is not an equal exchange.

In addition, you misunderstood what I meant by fares in overlapping market. JBLU has been pricing its product aggressively (discounted) trying to take market share, and it will do less of that now. The result will be higher fare. My bet is that JBLU will change its pricing behavior and adjust capacity, and CO will follow to reciprocate.
You are correct that I misunderstood, as I agree that B6 is assuming more risk for the LiveTV deal. I wouldn't mind too much if the fares came up a bit, though it will hurt my personal travel budget, as I think that the current levels are unsustainable for any of the airlines

S.
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