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A potential United-Continental deal would also put American Airlines, which had been the biggest network airline until it was overtaken by Delta, at a further disadvantage.
BA still serves Dubai but most of the tail fins at its vast main airport, which recently overtook London's Heathrow as the world's busiest for international traffic, carry the logo of Emirates, the small state's own network airline.
High costs have plagued every attempt by a big network airline to start a low-cost subsidiary, including Shuttle by United, Continental Lite, Metrojet at US Airways and even Delta's precursor to Song, Delta Express.
In his memo to employees, the chief executive, Mr. Grinstein, said Delta was striving to carve out "new and previously uncharted network airline territory," which he did not specify.
With the help of a sizeable investment last year from Etihad Airways of Abu Dhabi, the company, which has not recorded an annual profit in four years, is seeking to transform itself from a primarily low-cost carrier to a full-service network airline.
Another low-cost carrier, JetBlue, has already penetrated many markets in north-eastern states, the home market of US Airways.Nor is it only US Airways that faces such competition: four out of every five airline markets (ie, the area served by a pair of airports) now feature a budget carrier as well as a network airline.
Similar(53)
In 1995, the major network airlines controlled more than 85 percent of the market.
I think three or four network airlines would still give you plenty of competition".
All the network airlines will be flying between 10-20 percent less than projected last year".
The attacks on September 11th may be only partly to blame for the woes of big network airlines.
That could reduce the current six big network airlines — AMR's American Airlines and US Airways are the other two — to four.
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