It's called "the low cost model" and it's the favourite night time read of most aviation accountants.
Sadly, the classic low cost model you are referring to is
not being read by the accountants. They are only reading those chapters about minimising costs. If you read the story behind, say, Southwest Airlines, one of the major facets of their model was to treat the pilots well and pay them well. In fact this philosophy was applied to
all of their staff, from the lowest paid baggage handler to the CEO. They were all offered share options and profit sharing in direct proportion to their salary. This kept everyone on side and this team spirit helped blow the opposition out of the water. The original and subsequent CEO of SW were revered by most of the staff because their man management was good. The employees felt valued.
Compare and contrast with comments made about the managers of most other low cost airlines and the “esteem” that they are held in by their employees.