Its because the economic model in AM is " Lower price, more people will fly" <- That sounds astonishingly similar as what VIrgin Blue saids in their in-flight magazine for starting DJ.....
I suppose your plane is a DC-9, with 115 seats. Then you'll need lower price to attract 115 people to fly with you.
Whereas your competitor, Airline A, uses CRJ-100, with 50 seats. Then he/she will only need a price that 50 people will be willing to fly with you, which is, of course, higher than what your price have to be.
