Please, get your facts straight about what happened with AA and Legend. When AA and the other carriers moved to DFW in the 70's from DAL, it was under the assumption that DAL would close to commercial traffic. WN fought to remain at DAL because the were and intrastate carrier at the time. When WN wanted to fly to MSY, the Wright Amendment legislation was passed to protect DFW from DAL. This may seem trivial now, the history between Dallas and Forth Worth agreeing and supporting a common airport made the situation tense. Fort Worth did not want to lose "access" to the region's gateway as had been done to Ft. Worth Meacham Airport and FW Greater Southwest Airport, both of which competed and lost to DAL.
As a result, carriers funnelled a ton of capital into the development of DFW, most notably of course AA. Then T. Allen McArtor has a novel idea to start an airline that caters to Dallas businessmen flying first class, long-haul service from Dallas Love Field, virtually in the heart of where most of these people live and work. Needless to say, these are very coveted passengers of AA's.
The legal fight was between AA and Ft. Worth because they felt that this startup was in violation of the agreements signed by the airlines and the two cities when DFW was built. As you know, legal battles ensued and Legend eventually won because AA dropped the case and decided to launch flights from DAL as well using converted 56-seat Fokkers.
However, rising fuel prices got the worst of Legend more than AA did. AA and Legend competed in only two markets, LGA and LAX. AA never undercut fares to drive Legend out. Legend did not hedge fuel purchases and they took a detour from their business plan and offered lower advanced purchase fares to attract customers. I am an AA stockholder and I would expect nothing less than my company protecting its market share. It's called capitalism. Every other industry in America has similar practices so it's not unique to airlines. Established airlines are not just going to allow any startup airline to take their business as a goodwill gesture. That would be suicide. Nobody has a problem when AA and UA compete against each other, why should this be any different?
The last thing we need is Congress and the Federal Government sticking their nose into the day to day operations of the airline industry. We gave that up twenty years ago.
My wife can't wrestle, but you should see her box.