Question about route competition

[Ligo]

Decided to ask here because I still don't understand how competition mechanics works....
I have a route with competitor. My B722 with 160 passsengers is half filled (80 passengers). I switch this B722 to a B732 with capacity 96 Y seats +15 business class.
Price remains unchanged. According to logic, my new B732 LF should be filled at about 85-90% level as far as it transports the same amount of passengers (80) First days it is truly so but after 2-3 days I see the LF significant decrease to the half loadfill level again. My B732 flies again half filled but transports already 40 passengers instead of 80. Could anyone explain me why is it happen?
Thanks in advance.

[gazzz0x2z]

many possible things.

(1) too small for this route. When you're flying too far for a small aircraft(like 3000NM for a 737), the bigger the demand, the bigger the penalty. So LF decreases while demand increases. Probably not your case(decrease in LF is not that quick).

(2) Price war. Opponent decreases prices on that line

(3) more opponents flights on the line (if potential is 200, and your opponent makes 3 flights, your base potential is 50)

(4) better seating for the opponents - especially on the longer routes.

(5) opponent flight at the same time. If you fly at 6, your opponent at 6, 12, 18, the potential will be divided in three for each starting time... and then the 2 flights at 6 are divided in two.

(and many others)

[Ligo]

Thank You for detailed answer.So many factors that I can't control but have to predict... Like in real life. I love AWS:)

[knobbygb]

Basically good advice (and I am the competitor so I cannot help further) but:

(5) opponent flight at the same time. If you fly at 6, your opponent at 6, 12, 18, the potential will be divided in three for each starting time... and then the 2 flights at 6 are divided in two.

This is totally untrue.  The times between competing airlines are not taken into account at all. (I stand to be corrected if something has changed recently).

[schro]

This is totally untrue.  The times between competing airlines are not taken into account at all. (I stand to be corrected if something has changed recently).

I hereby quote this for truth.