The EU airlines already have such a superlite fare product (e.g. AF/KL, AY) and use it on routes where LCCs compete head on. Its usually personal item only, no handbaggage and no early boarding group. The US3 have the 'basic' fare for domestic routes where you board last and are assured that your hand baggage will be gate checked (for free).

I think LHG is just analysing how and where to implement it, i.e. how to configure/customize the product that is already available in their Amadeus tool kit. Can't leave any ancilliary revenue lying on the table these days.