Full-Service Airlines Are "Basket Cases"

Ryanair CEO Michael O'Leary on why no-frills is the only way to fly -- and why high-fare carriers are stupid businesses

The one-two punch of economic downturn and post-September 11 fear of flying caused a sharp reduction in domestic air travel, sending most airlines into a deep slump. But even when the economy rebounds and fear of terrorism recedes, one thing isn't likely to change for the U.S. industry: Low-cost carriers like Southwest Airlines (LUV ) and JetBlue (JBLU ) will still be nipping at the heels of full-service airlines.

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