Airbazar, I think its simplistic to say price matters less in Europe.
Ryanair's famous 1p (plus tax) fares are very common, and are a headache for competing LCC's, let alone the majors.
LCC's are also not just a US thing, there are many LCC's in Europe - I can think of 6 in the UK alone - although I'm sure there are more.
The trick the US majors seem to be falling into, is to lower their ticket price, without proportionately reducing their cost base, whilst at the same time reducing customer service.
To compound things, some majors have then launched LCC's, with better on board service than the main product (IFE for example), the effect being promoting LCC's more, and harming their brand and bottom line.
I'd suggest that the BA
tactic of reducing prices to a reasonable surplus above average LCC tickets, whilst still differentiating their service by offering food and drinks service, keeps the pax - indeed I understand that BA
's euro operation is now in profit, after years of being subsidized by their longhaul ops.
also learnt the lesson of selling their LCC (Go) at an early stage, to concentrate on their core business.