>>Care to show me your sources that cite DL
having offering a -10% profit margin on the route? I'm sure the DOJ would love to hear from you if you can prove it.
What's that? You say you can't? Figures<<
I'm saying a -10% profit margin in general. Now that I check the facts-1Q03 3.1B in rev, 426 million loss EXCLUDING one time items =-14% profit margin, 4 points higher than what I thought it was off the top of my head. Doesn't sound like an airline that should be cutting fares by 50% or more and adding almost 1,000 seats at these low fares.
>>Care to name me a real life example where the LCC added more capacity than the new airline on the route, offered triple miles, and dropped fares by more than 50% while having a -10% profit margin when a major or another LCC started flying the city pair?
The LCC IS
the new airline on the route.<<
You don't get the point. A LCC will always operate at a low cost even on monopoly routes. When I switch the roles around, the LCC doesn't pull all of the predatory tricks that DL
did on ATL
didn't add 3 more dailies when DL
-PHF or ATL
-CAK, and offer triple A+ rewards on the route. They didn't even lower their fares.
>>As someone else pointed out, are the major carriers supposed to just roll over and play dead for the LCCs? They have the right to defend their market share, and leveraging their advantages such as larger aircraft and frequent flier programs is just good business, not predation.<<
Good(aka ruthless) business or not, it still violates laws in place to prevent an unfair playing field. A good fighter could beat the crap out of someone using their known techniques and muscles, but they will still get in trouble with the law for fighting.
Predatory practices wouldn't be a problem if Delta decided to offer triple miles on all routes, and didn't add tons of seats to ATL
-LA within days of B6