Anyone who thinks that there is a flaw in MOL strategy would be quite naive. They have cash to burn and can use it to clear out competition.
There is no flaw per se in Michael O' Leary's strategy EI-BUD - after all he has achieved massive wealth maximisation for himself.
However, there is a flaw in FR's strategy as I stated above. It is a short term strategy that will not work in the longer term, as Michael O' Leary has admitted in the interview. The strategy of volume revenue generation cannot work once the scope for excessive growth declines - which is something that is not very far away either.
FR have to generate more fixed revenue streams - as opposed to transient ones in terms of routes only lasting for a year or a little more etc before aircraft are redeployed to new bases once again.
The problem is - how do you reposition a carrier which has a terrible reputation for customer service and no prestige brand recognition - but only differentiates on price. When that differentiating component is no longer so clear cut, there is going to be an issue.
Average air fares across the industry are heading north and will continue upon such a trajectory for some time.
EI Premier