Why would UAL mngt, or anyone else do this??
SB flies to all the sh!tty, out of the way places in the country. Keeping them around gives all the mngt types out there an excuse to say "these rates are the new industry standard".
I agree. And with our negotiations coming in '09, I can GUARANTEE that's exactly what my mangement will be crying. We can't compete with Virgin because UAL pilot/flight attendant/maintenance pay is too high. We'd like to raise your pay, but we can't, etc., etc. And in reality that argument, in some cases, might not be far from the truth. And the downward spiral continues.
And unfortunately, the days of any airline being able to "bury" anyone I think are coming to a close. Margins are too narrow and these new up starts are too well capitalized to sustain a long term fight. Sure, if Skybus was stupid enough to hit AMR in DFW, for example, AMR could "bury" them, but they're probably not that stupid. It will be a death by a 1000 cuts as they just undermine everyone's market share (if not them, one of the inevitable copy cats), taking a few % points here, a few % points of market share there, and before you know it, we're right back in the early 2000's again.