We are now reaching a stage of maturity in the low cost market. The strongest have survived and we will now see changes in strategy that will eventually change some of the key characteristics of the LCC model.
I don't actually think we are.
What we are and have been seeing is a retrenchment due to a sustained and long recession BUT the crucial thing is that they never last for ever, which is easy to say when a potential double dip is possible.
People stop spending money in a recession because of fear and a lack of confidence of what is around the corner added in with wholescale restructing across vast swathes of industry.
The key thing will be the airlines and companies that are ready for growth and which have capacity and flexibility to move quickly. These could be the big winners in the long term, the reason could is because if companies judge it too soon then potentially they will spend before people are ready for it.
People forget a vile recession in the 80's then years of growth, same in 90's and same now. Its just the time between last and now was longer which meant people forgot about it.
I think U2 and FR are well placed, I'm not convinced the legacies are because when thing are getting better you will have Unions demanding back what they gave up.