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If running an airline isn't sufficiently profitable, there won't be enough spare capacity to handle irregular operations, personalized customer service, etc.

Some of it is just being badly run, but a lot of it is trying to eke out as much efficiency as possible.

The only way to win is not to play; the airline industry still has overcapacity as a result of the legacy carriers and deregulation, so it's not a great idea to enter the market. The exception is air cargo -- FedEx is an AMAZING business.



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