The way it works is that ticket price of 10 EUR only really covers the cost of printing the ticket :) Everything else costs extra, which means that if you, for example, want to take some luggage with you, you would need to pay around 100-150 EUR
No, but you can check yourself. Flying in Europe is cheaper than train or bus. Not sure if there are Ryanair style cheap airlines in the US or other parts of the world.
Isn't this trading convenience (like flying stand by or at odd hours or dates)?
My guess is if flights priced in externalities they could not be cheaper than alternatives like trains. (Unless they're leaning on whales like first class to subsidize cheaper seats.)
Indeed. In particular, the rail ticket I bought at the destination airport was about twice the price of the flight, even though it was a much shorter journey.