the future
The industry is in turmoil but the consolidation has started. On a worldwide average basis people are not paying enough for their tickets, therefore airlines will go bust until they do.
The combination of LCC and 9/11 was just a catalyst for what was always going to happen.
Now we are seeing deregulation in europe and a reduction in state aid, LCC costs rising and Full frills costs coming down.
I believe we will end up with a couple of mega alliances and a handfull of LCC's scattered around. There will be higher fares on all flights.
Who will survive?? survival of the leanest. I think the small LCC's will be swallowed up on their way out by the big ones, and then the LCC with the lowest cost base will win. When they do they will up their prices.
The full frills will benefit if they are part of the big alliances.
IMHO