United Continental Is Forging Ahead With a Bizarre Plan to Grow in Los Angeles

Los Angeles International Airport (also known as LAX) is unique among American airports. Most big hubs have one or two dominant airlines. But LAX is a major base of operations for each of the five largest airlines in the U.S. This has led to epic congestion there -- and a brutal competitive environment.

A few years ago, United Continental (NYSE: UAL) was the largest carrier in Los Angeles, but it has slimmed down since then. Meanwhile, American Airlines (NASDAQ: AAL) and Delta Air Lines (NYSE: DAL) have expanded significantly at LAX, becoming the top two carriers there.

However, United's new leadership team now appears determined to grow again in Los Angeles. This bizarre decision is likely to cause further profit erosion for the company.

Source: Fool.com