The resulting expansion in capacity should increase competition and reduce returns.
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Despite a growing market, capacity explosion created rampant competition and margin pressures.
The result was a capacity glut, ferocious competition and frantic price-cutting.
But there is a danger in too much indiscriminate support: it would freeze the airlines in their present form, with their current capacity, and reduce competition, at a time when the right response is probably to shrink the industry.
But some analysts worry that the ever-increasing competition and over-capacity will prompt local manufacturers to look overseas for sales, creating tough competition for Thailand.
Global competition means that capacity can be pushed harder and unemployment sent ever lower.
And leading firms are emphasizing company-wide cost reductions, as strong competition and excess capacity pressure operating margins.
Even better, due to more competition and excess capacity in the North American car rental industry, American Express expects rates to remain unchanged in 2012.
They use the increase in capacity to leap frog over the competition sourcing the instruments from elsewhere.
It is hard to have pricing power when your competition also has more capacity than he wants, so he prices his product as low as he can to make a profit, but also to get the sale.
Producers avoided price competition by controlling their production capacity.
Colin Matthews said a decision on new airport capacity was "urgent", because of competition from rival airports in Europe and the Middle East.
But as the Competition Commission noted there is little spare capacity at London's airports, so airlines don't have any real choice.
If that were to occur, the government would get the opposite of what competition is supposed to provide: excess capacity without price or performance discipline.
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Rejecting Big Data because a business does not appear to have that level of dynamism would be a mistake, identifying where your business does have this capacity for change and executing it better and faster than your competition is a great opportunity.
Because domestic natural gas rig count is already severely depressed, we see limited potential for further capacity shifts over to oily basins (i.e. increased pricing competition for CJES).
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Government-supported industries end up suffering from excess capacity, making products that are inferior in quality to those produced by overseas competition, and yet too costly for local consumers.
Although the outlook for ultra-deepwater drilling demand remains strong, Transocean could see increasing competition going forward due to the addition of new ultra-deepwater drilling capacity in the industry.
Last weekend's Air New Zealand Cup final between Canterbury and Wellington, the climax of the country's top domestic rugby union competition, saw just 12, 000 fans turn up at the 40, 000 capacity AMI Arena in Christchurch.
The high capital depreciation of this equipment must be offset by running it at full capacity, so rather than cut production the market participants lower prices to entice customers away from their competition, creating a downward price spiral.
The steel lobby claims foreign competition is killing the industry, but that is simply not true: American steel-making capacity is no lower now than it was when President Ford was contemplating sanctions.
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