I am not suggesting price fixing. Airlines should not try to be everything. More importantly, airlines companies should focus on building its regional economy scale concentrating their routes in one region or targeting at one particular customer segment.
Cost-leadership is not a sustaintable competitive advantage and does not provide a strong barrier to entry.
I don't agree that business does not have choice but keep growing. Non-profitable growth can only destroy shareholder's value as exemplied by many companies during Internet bubble.