alangirvan,
Cheaper fares are all well and good but trying to survive forever by selling super cheap tickets is another thing..... Virgin has done well and Im sure they will continue to do so but remember they were handed nearly half the market overnight with the collapse of Ansett and have yet to see a decent recession.
Costs can only be cut so far and eventually it will be the big spenders who keep the airlines going...... Ive always personally believed that the full service players will survive longer than the (not all) LCC's.
The NZ regional game: As cloud and flybe said..... It will be a factor of who is prepared to pay a 'jet' premium, and those who can will place the shedule ahead of the jet factor anyway. The rest (like me) will go with whoever is $10 cheaper
