This situation will be what forces a final round of mergers in the industry. I predict an AMR/USAirways combination to make a new, "largest" carrier and then the remaining big carriers will go after the remaining smaller independent airlines or the smaller carriers will combine to make a new, big carrier. Economy of scale is important, if you look back through airline history smaller airlines (and large ones too sometimes) tend to either fail or get bought out eventually. Alaska, SW and Hawaiian are the exceptions to the rule so far. The jury is still out on JB, FRNT, Spirit, VA, Allegiant, etc. This is sure to get interesting before it's over.