Little Airlines, Big Ideas

Two budget carriers operating international that are trying to separate themselves from the major legacy carriers are La Compagnie and WOW airlines.  Both targeting different types of business. La Compagnie offers an all business class experience for a fraction of the price.  For a whopping $1500 USD once can fly round-trip, non-stop from EWR (Newark, NJ) to CDG (Paris). This experience includes the lie-flat seating along with the champagne experience like any other legacy carrier.  They operate a Boeing 757 narrow body aircraft with 74 lie-flat seats.

As for WOW airlines who is based out of Reykjavik and fly's from BOS (Boston) to Reykjavik and then onward to 18 other cities within Europe for a measly price of around $400 USD. The Price is includes nothing but your seat which means bags, meals, and beverages are all at an extra cost.  This targets a certain type of passenger who might not of had the opportunity to travel international due to high travel prices, but is now able to.

Both airlines are owned by Icelandic Airlines. Targeting all markets, Icelandic Airlines is genius for doing such a thing. Appealing to the budget conscientious as well as the well business market and everything in-between, only time will tell if this pyramid will rise or fall.

Having covered every aspect of the airline market, this will definitely make it hard on US carriers or any legacy carrier for that matter. It is creating more competition which is not always a bad thing, but then again, having too much competition will create a decline in everyones profits. 

http://www.forbes.com/sites/garywalther/2014/09/25/la-compagnie-the-upstart-business-class-only-airline-with-the-best-ny-paris-business-class-fare/

http://www.dailymail.co.uk/travel/travel_news/article-2763402/Business-class-ONLY-Michelin-starred-menus-massage-chairs-luxury-cosmetics-new-boutique-airline.html