Ttree Ttrimmer,
You are assuming that all airlines work in a vacuum?
Supposing NOW did launch with one days notice and just suppose that those orange chappies are selling at the extortionately high rates for which they are reknowned. Do you think that if one of the routes on which NOW flies is a orange route that there would not be a competitive response?
I suspect that if the competitive environment required it that EZY would drop their fares to a more competitive frame (remembering that they have a lot more frequency on most of their routes than NOW are likely to start with). Surely they would just price the flight that is closest to the NOW frequency at or below the NOW rate and leave the rest as is?
This is exactly where fixed pricing never can and never will work