CAL Lite didn't fail just because it went to an all coach, no-frills model. It failed mainly because it initiated servcies between a lot of odd markets with litttle traffic, like GSO-DAY, GSP-JAX, etc. with 5 frequencies a day. Load factors were 40%. The concept was sound, but the execution was a disaster.

If CO moves to a more coach-centric model within it's current route structure, then cost per ASM should decline.

Domestically, I can see more of the legacy carriers moving to a "utility model" with air service viewed as a public transportation commodity. Less so on transcon or Int'l flights.