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How come that low-costs can offer low fares and still make a profit, whereas the legacies are unable to offer cheap Economy tickets?
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Legacies can and do offer cheap prices (just got a day return flight in January with BMI, LHR to CDG return for £12.50 plus £50 odd quid in taxes(aarghh)).
But a few example the new airlines use (a little generalisation here)
Far fewer employees per plane/flight
Cheaper airports to fly to and from
Deals with 'authorities' to pay them for bringing flights and passengers to the area.
Perceived to maximise crew use
No legacy costs in terms of Human Resource Provision (look at the benefits and lack of, look at the age of the CC - there may be some older than me - never seen them tho)
Noval idea such as getting new pilots to pay them in various ways to do the flying
On board services charged for
Edit out the costs on the plane of not buying the extras (safety cards, window blinds, reclining seats for example)