Did AA plan this BK in 2003?

[WorldTraveler]

Eric's analysis speaks to the fact (intentionally or not) that the airline industry's pricing is what's been bankrupting and killing airlines for the last decade. The inability to raise fares even $5 is a direct result of competitors with lower costs, who can make a profit without that extra $5 added. The four Chapter 11s last decade exacerbated the problem for AA.

Bottom line is that our air transport system has become unsustainable cost-wise and fares will need to rise at least in line with inflation (which they haven't done since long before deregulation).

yet regulators and lawmakers seem to accept if not like the notion that the current system means that the weakest players are forced into a corner where they must get their business turned around or become extinct.
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The industry HAS had an excess of capacity for most of the time since deregulation but it is becoming increasingly difficult to say that is the case when almost all of the industry can make money. Given that it is AA only that is losing money this year, it becomes harder and harder to blame the industry and its capacity.
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The airline industry has resources which can easily be moved from market to market seeking the best return AND it also has a fair amount of ability to remove capacity either permanently or temporarily by getting rid of older aircraft.
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When you consider that government here takes 25% or more of domestic ticket costs, there is a huge amount of the cost of air transportation that goes to the government.
It would be very easy for all of the airlines to pass along a few more dollars to their employees if the government weren't taking as much - but instead of reducing taxes, we are seeing higher and higher taxes added.