You guys are dreaming....and clearly you know nothing about airline economics. In competitive markets the key to success is having the lowest 'unit costs' and unit costs roughly equate to how many seats you have to sell,
The critiques of the management books advocating that lowest unit costs are the key to success suggest that a strategy of having the lowest unit costs is risky in competive markets (this qualification is important but your post refered to such markets).
To get the absoute lowest unit costs you have to have a commodity product (ie no frills product): (1) such products tend to aimed at cost sensitive customers and (2) the strategy is easy to replicate (eg Jetstar and Tiger). Hence you are likely to find youself in a price war with several copy cat competitors all fighting for customers who want the lowest price.
One solution is to find a way to add some differentiating attribute to your product so people will pay a little extra for it. You will keeping your underlying costs low, but incur a little extra cost to add that extra something. The trick is to get the mix right (Air NZ Koru Hour) and not find yourself stuck in the middle (Virgin Blue red seats?)