1.   American, like other established carriers, is also facing increased competition from low-cost airlines that offer cheap fares and few frills to travelers.

2.   But the added competition has further eroded the finances of established carriers, which may force consolidation in the industry.

3.   Established carriers such as Delta, meanwhile, are devising ways to profitably defend their turf without diminishing their traditional strengths.

4.   Established carriers have trimmed routes and staff to stem losses, or in the case of Swissair, averted collapse through a government-led bailout.

5.   In the past decade, all such crashes involved established carriers such as USAir, United, American, and Continental.

6.   It is expected to hasten phone competition because resellers will not have to build their own networks of switching stations and phone lines to compete with the established carriers.

7.   Moreover, any restrictions on predatory pricing by established carriers would automatically shield new airlines from competition, leading to higher, not lower, fares.

8.   Of course, the woes of smaller competitors can only help the bottom line of the big established carriers.

9.   Other statistics may suggest, however, that such fledgling airlines have had more frequent but less-serious safety problems than some established carriers.

10.   Recent history shows a spotty record for established carriers in creating a budget airline.