Aerospace -
These are airlines, not gladiators. They are in business to make money for their shareholders, not to 'win' a battle with a perceived competitor. IMHO EasyJet have an excellent business model. They are a loco, but have positioned themselves in the market as one with a more caring image than Ryanair. You don't see their CEO slagging off his competitors as Mr O'Leary does. You don't see seats advertised for a penny each.
Easy's model is, as has been stated by MUFC, to offer higher frequency between principal cities/airports, rather than lower frequency between secondary cities/airports. Both companies know their own markets, and both do very well serving those markets.
Neither of these companies would benefit from a head-to-head 'fight' - all that would do is reduce yields and thus profitability. That's why they very rarely compete directly. There are sufficient routes out there to allow both to continue growing before they start going head-to-head.
What is interesting is how their respective business models will fare as the economy slips in to recession, if that is what is about to happen
Both are successful, profitable companies. Both are very impressively run. I expect the airlines who suffer in a downturn will be weaker companies without financial firepower and those with legacy costs and arcane working practices.