I'll bet Ryanair isnt far away from offering free flights, you just pay for all the ancillary revenue like checked bags, seat assignments, etc.

Does Ryanair succeed in Europe because they compete against the rail services more than the other airlines? Here in the states travel by rail isnt as widespread, so there wouldnt be as many pax to "steal" from railway travel. Airline travel(in the USA) is the most common way of traveling over a few hundred miles.