Earlier quoted context omitted.
That's the thing though, that is exactly what a late stage "free market" looks like. What you need is a heavily regulated market that prevents exactly this behaviour. People need to stop wishing for the "free" market. The term is abused by orators and manipulators who prey on peoples desire for a market which is free in the spirit of the word, and deliver to them a market which is technically "free" and horrible.
The end state of free market (as in free of government regulation, not free to compete) is monopoly. Capitalist societies understand that and regulate to ensure freedom to compete. Europe is much better at this than the US.
Air France has a practically guaranteed monopoly within France; the only reason that monopoly doesn't extend past its borders is that international air transport agreements would make it impossible for Air France to control the entire French air transport system.
Where's that freedom to compete? If one argues that "Europe does it better," I might argue that either that person hasn't ever lived and done business in the US and hasn't lived and done business in Europe. Anyone that suggests that competition is protected in Europe (or in my case, specifically France,) has no idea what they're talking about. Competing against entrenched players in agriculture, transport, infrastructure and technology is excessively difficult. In the US anyone that can buy an airliner, get the FAA inspections can essentially start an airline. In France such an attempt would be met with violence. Air France itself attempted to start a budget airline in 2014 and strikes essentially shut down French aviation for over 11 days.
Protecting competition would mean the that the government wouldn't abide the labor monopolies that hamstring companies attempting to compete.
France does have monopolies -- although most of those monopolies are in labor -- and labor monopolies, otherwise known as unions are just as destructive as any other form of monopoly.
Europe does not do it better -- they just do it differently.