Surely it will depend on how big the War Chest is and how much an airline can grit it's teeth with the fare price being constantly driven down.
I've heard Ryanair have a billion pound war chest;so i guess if they offered free seats on selective routes,this could knock out the competition....
Costs are obviously being constantly driven down to achieve low fares and the focus will be on innovation and the "Ancillary Revenues",ie on board sales/internet deals with hotels,hire car firm etc.
Although perhaps a squeeze on the economy will stop the public taking advantage of cheap fares,but then again perhaps our travelling habits have changed forever preferring short,frequent vacations rather than the twice a year 2 week holidays!!
Or maybe the Kyoto agreement will stop all low cost operators in thier tracks.............
