Likewise but in a sort of mirror image, by banging the lo-co drum, being gaudy and brash - Easy and Ryan come to mind for me here at least - the budget airlines' packaging diverts the cost-conscious consumer to their product. We may not buy, and especially so when we realise we can have the premium airline for the same or just a touch more, but we are fingering (ahem) the product, and that's half the battle won.
Agree but people have realised that instead of paying £250 for1 for a ticket requiring an overnight stay on Saturday and they get a "meal" on board they can go LCC and pay £100 or less.
I have come across too many people over last 5 years who tell you of the fact that they were able to visit Cousin X.s wedding or the friend they knew but in the old days could never have afforded the opportunity to visit.
People forget the small business person who would never have looked for business opportunities abroad as the £500 BA fare to Rome plus hiring the car to visit a prospective customer really eats into any cash they have. Now they do a Ryanair or Easyjet get change from £100 and can afford 5 visits as they turn a prospective customer into a real one. Sales people generally say 4-5 visits or contact points required to sign up a customer, sometimes less sometimes more.
In many ways the LCC model has liberated many areas of Europe from the shackles of Capital city funding where all the cash was spent on projects and airports in teh Capital or big cities.