<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Plato90s:
UA and other majors operate routes because they can. If JFK-LAX is profitable for 1 airline, 3 others try to jump in. The route isn't profitable for 4 airlines at once, but none of the 4 will bow out.
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Very good point. But the problem is that the airline business should be divided into two categories: niche airlines and full service airlines. The niche airlines try to operate profitably by hand-picking the desirable routes. The full service airlines try to operate profitably by having full coverage.
Clearly, Southwest, JetBlue, and others have been profitable serving carefully selected routes. If United is to contract to strictly profitable routes, fine. What would be a problem for United is to be neither a niche nor a full coverage airline, a position similar to TWA or US Airways. This would put them on a course for disaster. My $0.02.
[This message has been edited by gglockner (edited 12-13-2002).]