No Capacity and Liking It

Reuters dropped a good article citing evidence that airlines will likely keep constraining capacity on domestic routes. However glacially the airlines moved they have finally started to arrive at their destination...that being price control via reduced capacity. And its not a new idea. Even I was talking about it over a year ago. ATW had a really good article in June of this year, the title says it plainly enough. "Its the Capacity, Stupid" 'Nuff Said. A final note, capacity constraint does not apply to international routes. The gloves are off as the major airlines continue to press the advantage on their international routes where they are finding higher margins to boost the bottom line.