With the merger of Northwest Airlines and Delta Air Lines, some are concerned that northern Minnesota may lose air service to the Twin Cities. Delta is aware that if the cost of airfare to the Twin Cities, a major air hub, gets too high, then people will drive to the Twin Cities to catch a flight. If they do, they may choose other airlines than Delta.
See "Delta lands in Duluth to try to ease Northland concerns", Duluth News Tribune, 2009-02-12
The tickets for connecting flights may have to be loss leaders in order to get people on the longer flights.
Government and industry are filled with examples of loss leaders creating greater gains and of cutting out "losing" activities that actually lose profitable activities. Think Circuit City laying off high-paid clerks. How many people stopped going to Circuit City because they couldn't find knowledgeable clerks?
