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"Trading is becoming a game of attrition as weaker players shrink capacity," says Mr Hintz.
And American will shrink capacity by 7.5percentt, instead of the 6.5percentt it had initially planned.
This makes it politically awkward for either firm to fire workers and shrink capacity when times call for it.
Because cross-shareholdings protect parts companies from takeover, the industry cannot readily shrink capacity as output falls.
One is that airlines are horrified at the falloff in passenger traffic and are scrubbing flights, dropping routes and parking more planes in the desert to shrink capacity, even beyond announced reductions, to keep planes flying full.
(It helps that airline passenger demand is down, obviously. While many high-demand route flights are full as airlines shrink capacity and squeeze as many people as possible onto planes, others are taking off with lots of empty seats on certain routes).
Similar(52)
When Conrail was operating the freight system in the Northeast, it shrunk capacity to cut costs, he said.
"With shrinking capacity in the global insurance market and hardening rates, current trading conditions look increasingly positive," Lloyd's said.
"We're just shrinking capacity, and as a result, parents are being closed out everywhere they turn," Ms. Holcomb said.
Demand for many types of paper there is declining, though mill closures and shrinking capacity buoy prices.
Odd, then, that so many universities are firing staff and shrinking capacity.The problem is student numbers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com