I think BigJetJumbo got it just right.
KFlyer you seems to know something but not everything. You want the airline with no money to expand !! Ever herd of "Lean and Mean Operation" ? Knowing something is not enough !! We all like to see UL expanding , but at the moment its a battle for survival. In order to survive they have to make sacrifices. Sacrifices are not easy.
Not allowing the others to operate is good because then its less competition. Down sizing is good . It will allow UL to regroup and to come up with a business plan which will make sense. Down sizing will NOT diminish the UL brand.