I'm not trying to start or participate in a flame war so don't take the question incorrectly.
If a A-320 seat configuration with 136 seats or so in it could bring in the income that a 150 seat aircraft configuration can bring in don't you think either LCC or some other airline would be all over it? B6 configures at 156 seats if I recall.
I just don't think there are enough business passengers, or their companys/clients, willing to pay for that kind of configuration.
There are in bigger markets. Atlanta metro has more travellers willing to pay for the value-added services and amenities than Charlotte metro. NYCmetro has more than PHL metro.
I think that increasing presence and market share in the bigger markets allows carriers to do a few things:
1) offer seat miles at a lower cost (larger aircraft)
2) offer a more varied set of service levels
3) offer a more rational pricing system, because the carrier has relatively less need to provide bottom of the barrel fares to fill the plane (depending on circumstances) and can induce more up-buying by a larger business market.
This is the main reason why I THINK that Parker is choosing DAL to pursue instead of NW. NW and LCC, domestically, have the smaller metro markets. I think the hybrid strategy of rock bottom costs could work for a limited time for a combined LCC/NW, but would be most vulnerable to true LFC's and would be induced into adopting the most onerous, yield-management pricing schemes.
I've said all along that USAirways should focus on being BOS, LGA and DCA's hometown airline, instead of SYR, ROC and RIC or even CLT or PIT. I think that Siegel couldn't see his way to transform, physically, the old US into such a hybrid type carrier without major disruption to the structure (including employement structure) of the old US. But he was thinking bottom up. I think Parker is thinking top down. Something like this: I CAN transform LCC into the true hybrid (more WN-like) efficient operation if I'm in larger markets, but I can't compete with WN in the secondary markets.
Just musing. I still don't think the regulators will see that vision and it won't happen. just a guess.