Yes Flap Sup, the railways in Britain get gigantic taxpayers subsidies. Meanwhile our own successful public transport industry is taxed and has few friends in government. I believe the railways will never get their act together.
On the topic of the thread, overcapacity in the Low Cost sector?Long term the answer is no, far from it. It is my belief underpinned by no research other than gut feeling and watching the growth in road traffic without end that the sector will grow and grow and grow. If convenient people will fly across the country to have lunch.
Naturally there will be individual failures and successful outfits not yet born.