I'll quote some previous responses to similar questions...just so my position is clearer:
--" Do you honestly believe the present business plan is sound, and only needs ( yet more ) cost cuts to sustain it?"--
-- *comment by Crazy8* "Just being realistic. If USAir doesn't adapt quickly to the marketplace, we'll be history. Period."--
-- *my response* "To be more realistic yet, that's specious in the sense that it is true only in a vacuum...at face value. If "adapting" means the same business plan/modus operandi, albeit with deeper cuts/shrinkage...we'll be history. Exclamation point."
Again, I want to be clear: Are concessions going to make or break this airline if this airline's intention is to have LCC costs ( wages, workrules, staffing ) while retaining tradtional carrier ops ( hub&spoke, fare structures, A/C utilization, large cheif/indian ratio etc ) or not? As it is now, this is EXACTLY what this team is increasingly implying...heck, stating flat-out in their rhetoric and actions. I understand that in many cases adopting a mirror image WN contract would be for many, an improvement, but question of cherry-picking airline MO's still looms largest.
Yes, one can theoretically crunch the numbers to show that YES, it probably IS possible to get staffing and wages low enough to the point it will compensate for the legacy type carrier ops, and show a profit, but it would be near impossible in reality. It would be like somebody moving their house back a foot or so to take up the slack in their clothes-line.
Yes, the revenue/passenger potential is higher in the northeast, especially if a premium product is offered. Both are being eroded for reasons all well known to us here. So do we fix the leak in our boat....or just bail harder?