Air Berlin appears to have been doing the same thing, losing millions a day while selling seats at dumping prices. The employees of other airlines are also losing out, as lower ticket prices directly affect the financial health of their own companies.
In early 80's I was in the UK charter airline business. Laker had screwed it self over buying too many Airbuses. It tried to survive by creating cash flow and dumping seats on the charter market. Competitors followed suit. Laker went bust anyway and we were penalised with lower T's & C's. Hindsight is wonderful. We should not have dropped prices & standards.
Ah. Look what LoCo's have done to the traditional industry. Yes; they have broken the cartel of prices, but T's & C's have also suffered, badly. However, there major majors seem to have kept acceptable standards for pax, maintained reasonable T's & C's and still make handsome profits. It takes team work. Unfortunately in some LoCo's that is lacking and the balance of power is one sided. It just takes common sense team work for a common goal and less greed on both sides.