Wow. just wow.
Do I need to define what competition is for you? Just in case, I'm going to, competition is the act of compteting for the consumers business versus other competitors (that is obviously the economic definition)
Now, you're trying to tell me that the airlines could care less if the consumer chooses the fly with them or not? There is no way that is the way the airlines operate. You have to remember NUMEROUS airlines filed for bankrupcy after 9/11 and before the laws changes. They can ill afford to file again with the laws being much more strict now.
And in the case of that one flight to DC. Have you ever heard of supply and demand? Because JetBlue pulled their flight to DC United now has the option to control the price per ticket without any fear of competitors being a lower bidder. So you're saying that jacking their prices up is a sign of no competition? Because personally I think you have it backwards.
Sure, Disney could start an airline and start flying out of Sac. But guess what, even if they were to charge $200 to DC there is NO WAY they would even break even!!
There is PLENTY of competition in the airline business. You just need to realize it is a business and the airline that can produce from a hub with the least amount of expenses and still have a more affordible price is obviously going to win.
JetBlue is a disaster waiting to happen. They have pulled out of numerous airports in the past 3 years because they can not compete with the larger airlines. So it would be pointless for Disney to do the same. There is competition but only with the larger airlines.