Case study

After the classic strategy dilemma between the razor and the blades, the decent slowdown in airline seats demand presents another interesting marketing case study.

I'm asking for your opinion, and if doable some arguments to sustain it thru commenting this post. Don't be shy, top airlines CEOs are in opposite disagreement about the right solution moving forward. For those curious and French readers, I've asked the same case question on the French version of this blog, Le eMini Blog.

Case study:
In 2006, booming demands for airlines seats had major airlines adding more planes and flights. Recent slowdown in growth has 2 major airlines offering opposing solutions.
> AA says they will increase the number of seats per plane and reduce the number of planes
> Southwest confirmed the additional 4 737s for 2007 and won't change an inch from current plans: same number of planes, flights and seats per plane.

If you were an airline CEO, which strategy would you pick? and why?