Cheap is the way of the future for Airlines?

The current economic condition makes low cost airlines the necessity for present and future but economic condition keeps changing, people earn more money, splurge it and then they loose money and save it. Its a whole cycle which indirectly dictates the way an airline sells itself.
Why Low Cost Airlines?
The current economic condition shows how vulnerable airlines are, how much dependent they are on the market, Airlines are here to stay, they are a necessity for fast, cost effective travel. If airlines go cheap, more people will travel, more the profits.
In a country like India where the Airline tickets are one of the cheapest in the world, Airline industry has the biggest competition in terms of Indian Railways.
People like to travel cheap, specially for short distances, hence its not surprising that Low cost airlines are in profit where as three major airlines in India are in red.
Cutting cost is directly passed onto the customer, it also increases the profit a company can make.
There are many Low cost models but one of the most successful one is of South West Airlines, use one type of aircraft save the cost in maintainence, pilot/crew training etc...etc
If airlines follow such models all over the world, they would go in red only because of a better competition, competition in short is good for travellers as well as the better competitor, since cheap tickets equal to more flyers.
Airlines can go cheap by
1. Using one type of aircraft
save on training and maintainence costs
2. Go no frills
flyers wouldnt mind paying for food, some dont even want food on shorter routes
3. Go cheap with crew accomodation:
instead of putting them up in a 5star/4star hotel what they can do is buy/rent private residences locally, which would reduce the cost of crew handling considerably.
4. Give more cash incentives to the crew instead of some benifits.
5. Use somewhat low hour pilots as First officers:
the amount of salary to be given is reduced, plus to get hours pilots wouldnt mind less pay initially.
6. Start their own agencies to make profits:
instead of outsourcing and paying huge amounts or percentage, start their own agencies which sell tickets or do their own ground handling etc...etc
7. Maintainence
doing maintainence the proper way will save loads of money, eg: keeping the aircraft exterior clean etc...etc
8. Pass on the benefits to flyers:
device ways which will attract flyers to your airline, eg: paying them some cash if they are carrying less baggage.
9. Direct flights & better fuel management:
more direct flights will save lots of money, for international carriers, flying direct twin engine ETOPS aircraft might cut costs, better fuel management like eg: refuelling more in countries where fuel is cheaper, will further add to the savings.

- Akshay