Airline chiefs disagree on best market strategy

0 Comments | USA TODAY, May, 2007 | by Dan Reed

DALLAS -- A surprising slowdown in the growth of demand for airline seats this year had the CEOs of two major carriers squabbling Wednesday, albeit indirectly, about how carriers should respond to the softening market.

The by-play between American Airlines' Gerard Arpey and Southwest's Gary Kelly illustrated the budding predicament in which U.S. airlines now find themselves.

Based on booming demand in 2006 and their expectations of a continuation of that trend, several U.S. carriers, led by Southwest, laid in plans to add lots more seats and flights this year.

But while demand is still up over last year, its rate of growth has slowed. Coupled with the new capacity added to the nation's air transportation system this year, that's making it hard for...