The airline industry does seem to have crossed the profitability event horizon. The focus on market share reminds me of the supposed quote from a car manufacturer along the lines of "We lose money on every car we sell, but make up for it in sales volume".
If one was being cynical one might think each scone shop was hoping the the other would go bust first, leaving them the only shop in town. As Sir Terry said, the aim of business in not to be the best service, but to be the only service. Not that any scone shop would ever behave like that.
The big Banks and the financial sector in general seem to have gone the other way. Don't fight over the size of your share of the pie, rather make shure the pie itself keeps getting bigger. They know that if they start slashing charges, in the short term they will befit, but the others will have to match them, and the pie gets smaller. By accident or design they have also managed customer expectations very well, in that their customers almost expect to be ripped off.