The reason companies like Gate are coming in is because they make someone an offer they can't refuse. The theory is that an escalator is put on the contract for subsequent years to raise the price to a more realistic level. In the meantime they try to get more business to try and make up for the loses. If they don't make their targets they end up closing down or retreating to the airport they came from and the airlines end up paying the cost as their old HA's will welcome them back at much increased rates
