The Houston-based Continental will cut flights “11 percent by the end of this year and ground nearly 70 planes.
With most major carriers now doing this, here’s the ripple effects:
1. Higher prices after this summer, due to limited capacity.
2. Cutbacks in orders from Boeing and Airbus, unless to replace the oldest, most inefficient planes quickly.
3. Opportunities for Southwest, which has trimmed its expansion plans for this year, but still has some expansion plans as of this moment.
We can only hope on No. 3, and also hope here in Dallas that Southwest does not continue its semi-collusion with American as the Wright Amendment continues to undergo its phase-out ending.
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