panda_bear
Your EZJET choice is my point - EZJET flys a 737 of some type - you would get a lower seat mile cost (based on a full plane) using something bigger - (what was AF using on that route) so why don't they?
You do stimulate demand with lower prices - here in the US there have being numerous examples , BHM, PVD, of Southwest moving into a market, lowering prices and sending traffic way up. But they do it with small planes flying full. They run 20+ flights a day from LAX to LAS (and many other routes) - the numbers would say get a bigger plane - but old Herb's crew sticks to their knitting - and makes money.
Personally I suspect the A380 will do fine - given the accounting we will never know - but it will not have anything like the impact of the 747 on the global market. The last figures I saw claimed a 10% seat mile cost advantage - the 747 was a 50%+ advantage.
Boeing has certainly lost sight of the ball and need to play catch up.
The one thing the international carrier cannot afford is market segregation - the cash is at the front of the bus - If I was trying to market forecast that is what would worry me. The people up front value time above all else - they are not going to get more space or drink more bubbly on a 380 - and if someone says my 340-500, 777 etc will get you there with less time (due to ground time) and less mixing with the rest of us - you can bet they will take their high fares with them.
Interesting to note a new airport opened in China today. Just as planes develop to demand - so do ground facilities. When I lived in Stirling the only international flights were to Prestwick Now you can do Edinburgh or Glasgow from New York. Quite the change
Boeing has certainly lost sight of the ball and need to play catch up. It will be interesting to see how it plays out.