Problem with FlyBe is that it is largely a domestic airline. Domestic flying is basically 'x' to London and FlyBe aren't really big at that because the big boys do it better.
So you're left with secondary or tertiary routes - many of which are barely viable.
The notion that the plane is faster than car or train is fine in theory but it's rarely true mainly because the K's airports are just awful places. By the time you've got to the airport, had to park a mile away, waited for a bus in the cold and rain to take you to the terminal, been shouted at and abused in a security queue and negotiated your way through a shopping centre, you could have already driven half way to where to you want to be. The trouble is even if the plane is faster than train or car it is rarely better as an overall experience - again because UK airports are just terrible places - and you have all the crappy baggage policies to deal with - none of which is an issue by train or car. Therefore even though people are traveling more than ever, non-London domestic flying appears not to have a bright future - therefore FlyBe does not have a bright future.