The LCC priciple of charging for checked in bags is a nonsense and has more to do with the EU ruling on subsidies and therefore downward pressure on yields than the LCC's would have us know.
Why not offer the opportunity for pax to save money and load their own bags or mail them to their final destination prior to their flight. At least the bags would get closer to where the pax wants to be than Ryan air ever could.
It's a strange concept from an air carrier perspective, bit like Ford selling a car with the wheels as an optional extra . I suppose one other option would be to load the pax in H1&2 and put all the bags for free in the cabin.
Is the Transec circular available on the net? I'd like to read it.