This announcement is excellent news for business travellers. Loganair's service, though only x5 weekly, allows business travellers to depart on Monday and return on Friday evening, something that Ryanair's schedule did not enable. I would be surprised if the route did not increase to x7 or x9 weekly in the near future as there is ample demand.
The announcement is also good news for the airport, and places it in a much stronger position. Just 12 months ago, Ryanair was the sole scheduled operator. From October the airport will be served by three airlines (for the first time since 2008), operating four domestic routes (for the first time since 2014).
The airport no longer has to rely exclusively on Ryanair, giving management more flexibility in charging fees etc. Also, the fact that both Airline Investments Limited (AIL) airlines will be serving the airport gives airport management the unique opportunity to expand the number of destinations served from the airport. bmi Regional's STN route is performing extremely well, with a load factor 20% higher than the airline's average. There is real potential for LDY management to secure new domestic routes and even a link to DUB. Only time will tell if LDY management seize this opportunity, or if they continue on their current trajectory of being lazy. Crunch time is coming, and unless LDY management can attract more routes and more passengers, inevitably the airport will be closed.