What do air travelers want? Competition spurs innovation.

If Jane Viscardi Brown had had her druthers over the holidays, she would have hopped on JetBlue - the low-cost airline that prides itself on high-quality customer service.

But it doesn't fly from Myrtle Beach, S.C. So she took Delta to San Francisco and back. And overall, despite the packed airports and security screenings, it turned out to be a rather pleasant experience. She credits, at least in part, JetBlue and the other low-cost carriers that are giving the older "legacy" carriers a run for their money.

"Since Delta's going bankrupt, they've gotten much nicer, and the perks have gotten much better," says the South Carolina singer. "I admire them still being cheerful after having to take pay cuts."

Thirty years after deregulation promised more consumer-friendly skies, the success of low-cost carriers is helping usher in an era of consumer-driven experimentation. Whether it's free satellite TV, a choice of "meal boxes," wireless Internet service, or ergonomically correct seats, airlines are scrambling to determine not only what customers want, but more important, what they're willing to pay.

The flying public has made it clear that low fares are king. So the race now is to determine what else will draw them to one particular airline and keep them loyal: Is it more legroom, a great frequent-flier program, or more flexible fares?

With most legacy carriers either in bankruptcy or struggling to avoid it, the answer to such questions may determine which ones survive. Those that falter in the consumers' eyes - like US Airways, with its Christmas-weekend baggage meltdown and rash of cancellations - may be the first to pay the ultimate price: liquidation.

But in the end, experts believe this age of experimentation may finally produce what the aviation industry promised 30 years ago: business that is truly market-driven and more consumer-friendly.

"There's no question that the drive for innovation is now unprecedented," says John Heimlich, chief economist at the Air Transport Association, the major airlines' lobbying arm. "Before, it was just about improving your profit margin. Now, it's more about sustaining your existence, so the consequences of failure are more dire."

As in any transitional era, some of the experimentation has produced big wins for consumers, as well as a few public- relations snafus. On the winning side are less restrictive fare regulations. For decades, the major carriers tried to keep their planes full with complex fare schedules and sometimes infuriating requirements. To get a reasonably priced ticket, one had to book at least two weeks in advance and stay over on a Saturday night. Otherwise, the flier had to pay business fares, which could be five times as high as the leisure-class fares - even for a seat in the same plane in the same row.

The innovative Southwests of the aviation world recognized how much that frustrated consumers, and they put in place much simpler fare schedules. Now, anyone can walk up the same day of travel and pay a reasonable price.

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