"The low cost model has only a limited life span before rising oil prices and a raft of proposed taxes and environmental laws, all designed to keep the riff raff out of the sky make the business model obsolete."
Well full service airlines are also subject to the above too. I think it is not Low Cost but Lower cost than full service that is the key to the consumer.
If a trend is to be made over the past 3 years then one will notice how low cost fares move upwards in about the same manner as Full Cost, while at the same time keeping the difference static. (please exclude the penny fair marketing offers)
Therefore mankind will always have the need to travel and will continue to seek out lower costs than the prevalent costs.........
Wonders of inflation, and even more wonderful how memory of these price hikes is limited to a few days
Oh Yes the full costs can adopt the discounting model to reduce margins to up occupancy and match Lower Cost airlines but then that is suicidal!!!!!!
