the industry
basic economic theory suggests that over time unfettered competition results in the sum of all the entities reaching a zero economic value state, where the average profit plus cost of funds = zero. Some organisations will be above and others below the zero return result.
The changes of rules allows velociraptors to take advantage of opportunities that occur from the change to the playing field, and also from inconsistencies that arise as governments have a unique propensity to arrive at irrational outcomes with even the best of intentions. legacy companies, and those that behave like legacies due to inertia, lack of comprehension, or lack of situational awareness will suffer the "slings and arrows of outrageous fortune", and either survive by reinventing themselves, or can be put on a metaphorical ventilator with State aid. In Europe, with the wonky governance of the EC and also various State players, it is more of a surprise that any industry maintains the ability to compete in an open market. The current direction of the RPT industry is to achieve the most minimal service outcome to the passenger at the short term benefit of relatively low pricing, but any assumption that pricing will remain attractive to the consumer in the long run is unlikely to be realised; the infrastructure of the industry needs to be paid for to be provided, and at present the prior investment has been afforded by legacy airlines and governments that were in a position to invest in the long term. Where the price of parking your car for a day at the airport, or the cost of a cappuccino is higher than the cost of the air ticket, it is hardly likely that the cost if ACMI+F, ramp, handling, security, terminal, landing, air nav etc are being recovered without some effective subsidies, which would even include the inflated value of second hand aircraft, being paid for by legacy carriers trying to reinvent themselves or other wannabes...
The EC is a swamp of B.S. regulations that impede competition, but have anomalous outcomes, such as killing the local carrier who is competing with others that are outside of the reach of the EC, or are smart enough to circumvent the rules of the EC. The retention of Alitalia while Malev collapses is inconsistent, and the EU citizens do suffer the consequences either directly (loss of jobs) or indirectly, (loss of infrastructure).
"if this is not a mess, it will do until a mess comes around..." as far as the RPT industry goes, and the EC regulation appears unable or disinterested in avoiding the collapse of the industry as is being dragged out in the US. OTOH, if you don't mind having pretzels thrown at you and drinking warm Coke, perhaps we are getting the mass transport system we deserve and desire.
My advice to young people wanting to enter the industry, Don't.
Cheers