Legacy airlines have announced further capacity cuts to keep fares high and airplanes full. This strategy which has worked so far, might backfire in 2012 if the economy improves.
Discount carriers like Southwest, Spirit, JetBlue and Frontier are expnading routes and beefing flights while the legacy carriers are retreating.
Discount carriers enjoy a cost advantage over legacy carriers in many categories, including newer more efficient planes, non-unionized workforce and lower debt. It all boils down to cost per passenger per mile.
www.premieretravel.com
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