I guess I am trying to combine two threads into one question here. Bear with me...
While reading the thread about Busiest Domestic Air Routes, I noticed that here in the west, routes to PHX and LAS are dominated by two airlines - HP and WN. Not so unusual in and of itself, but it was recently reported that HP is posting a first quarter profit, and of course WN is doing its usual amazing job at staying solvent (to say the least).
Is there a reason both airlines are competing so successfully and mutually profitable on these routes? Is this simply a matter of the nature of a duopoly? Or do both airlines have extraordinarily good yet different business models? And if so, is this a model that could somehow be duplicated elsewhere in the U.S./world?
Thanks in advance!!