Thanks for the response
racedo!
I saw an IATA article on it here as well
http://www.iata.org/NR/rdonlyres/FCD...g_June2006.pdf
Niche markets will have the highest margins. As airlines deploy their
competitive advantages to other markets and grow their network, overall profit margins will fall, as their advantage diminishes in new markets,
but it makes economic sense to expand until absolute profits stop growing – if those
operating profits are at least covering the airline’s cost of capital and tax.