Studies have shown that LCC penetration can result in overall travel market growth in a given region.
The launch of a low-cost carrier may eat into a dominant full-service carrier's market share, but the number of passengers in a market has been shown to increase overall, not only for the low-cost carrier, but for full-service carriers.
The latter tend to lower prices in response to what LCCs are offering, scrambling to adapt business models to a new landscape.
4. LCCs have meant the most to Japan
Japan is the most interesting example of a stagnant market stimulated by the launch of low-cost carriers.
Despite being one of the largest domestic aviation markets in the world, Japan has showed little or no growth in passenger numbers since the turn of the century.
"Japan has the unenviable distinction of being the only major market in the world to have about the same traffic today as 15 years ago," said a Centre for Aviation (CAPA) report published in August.
However, with the launch of three low-cost carriers in 2012 -- Peach, Jetstar Japan and AirAsia Japan -- the "abysmal" domestic aviation market grew for the first time in six years.
With the introduction of low fares, Japanese who couldn't afford to fly began traveling, with remarkable results.
Domestic passenger numbers increased by 8.7% in 2012, the largest percentage growth in 20 years.
Collectively, the three low-cost carriers added 2.6 million passengers to the domestic market and Jetstar Japan is now the largest domestic carrier from Tokyo Narita Airport.
"The contribution is not just in greater volumes of passengers whose traveling has a trickle-down effect across the economy, it is also in giving Japan's legacy carriers an incentive to become more efficient," said the CAPA report.
5. North Asia represents the greatest opportunity
The figures speak for themselves.
Air traffic in Asia will increase dramatically in the next few decades.
While U.S. airport passenger traffic was 1.467 billion arrivals (the largest in the world) and Asia's was 1.402 billion in 2009, Asia is expected to become the largest aviation market in the next few years.
By 2030, Asia's passenger traffic is expected to exceed 4.88 billion, in contrast to 2.367 billion projected for the U.S., according to IATA's Airport Development Supplement published in 2012.
Southeast Asia already has a high LCC penetration rate -- the LCC capacity share of total seats is approximately 56-57% -- but the percentage for North Asia is stunningly low at 9%.
"That's a 91% potential upside for us," says Jetstar's Alistair Hartley.
No wonder LCCs are excited.