I was under the impression that air travel was an extremely competitive market with slim profit margins. Am i wrong?
I knew nothing about this. My irritation towards the airline industry is entirely based on poor quality / service, which seems (to me) to be the result of my having no meaningful options as a consumer.
Try starting an airline with free checked baggage, free meal and more legroom. If your ticket price reflects the added cost you'd be bankrupt in a few months.
Would it be so terrible if the legacy airlines were thinned, and more Southwest/JetBlue/Virgin America-type newcomers showed up? As it is American, United, and Delta are the largest three airlines in the world because they all had fairly sizable mergers.