Airline Exec warns against increasing capacity

just more b.s. from the airlines

Jonathan, if it is b.s. then why don't you enlighten us with your comments and knowledge on this subject? Post something intelligent if you can.

I think rather than the message being a call to other airlines not to raise capacity, it is as much a message that Delta is not greatly increasing capacity, so no need for others to worry. The concern is initiating a cycle where capacity is increased, seats then need to be filled, deals offered, costs rise, profits fall. While that sounds good for the consumer, in the long run it is bad. Sorry to say, $200 transatlantic flights just are not a good deal in the big picture.

Isn't suggesting limiting increase of capacity a potential restriction of trade or anti-trust violation?

That's exactly what I was thinking. But on the other hand, the govt. already allows airlines to form alliances, which also limits consumer choice....so I guess it's business as usual.

What they do in public is not the issue. It is what they do in private that is the problem. If they had exchange memos, email, phone calls, arrived at some agreement and then acted on it, that would be illegal. Simply discussion the problem in public and hoping that others respond is not illegal. It may be a fine line but it is there.