And technical success would be no guarantee of low-cost operations, they argue.

ASA combines low-cost operations and high growth to fuel its success.

JetBlue isn't the airline to make a success out of low-cost operations.

"It has incredibly low-cost operations, robust growth, strong cash flow and will be around for some time," he said.

Eventually Fly became a carrier with both charter and scheduled low-cost operations.

Those low-cost operations are intended to appeal mostly to leisure passengers.

Instead, he looks for companies whose low-cost operations help them create strong profit margins.

With its low-cost operations, the company should continue to dominate the market, he said.

Tensions have increased as airlines like Southwest, which have low-cost operations, continue to grab more of the market.

Both sides offered few details about how the low-cost operation would be structured.