Rich Uncle Sam will just barge in and bail them out before that happens. God forbid we allow the market to correct itself. Lets continue to prop up dinosaur companies while they undercut their competition with no regard for the bottom line.I am also predicting that a number of the regionals we see in operation today will no longer be in operation in 2012.
It's a tough road, and the world's largest airline is going to be chopping up some of their connection partners.
Now, as far as United, American, US Airways, Continental's connection partners, I also see consolidation coming from those companies. Domestic capacity will continue to see a downward squeeze until pricing power is regained by the remaining competitors.