I take the 'bubble burst' to be the idea that the present number of LCCs will eventually be wittled down to 2-3 strong players....perhaps easyjet and ryanair.
I don't take the bubble burst to be the absolute end of 'no-frills'....I think the public have had a taste of what it's like to fly to Rome for 30 quid....and they like it very much.
