ALLMCC
I don't know the exact process in relation to the award of subsidies form the Route Development Fund - but I guess they will have to weigh up competing "bids". I am not sure how much BHD will be effected since I don't see how a route already served from BHD "economically" can be served from BFS under a subsidy - surely the criteria has to be that it is not served at present?
As for Ryanair competing with easyJet very rarely do they go head-head since easyJet aim to fly to "principal airports" rather than "secondary" ones - the one direct head-head one is STN-CIA which is an ex-go route and on which it looks lie Ryanair are taking the lion's share. I don't see the arrival of Ryanair at BFS having that much impact on easyJet unless there is a finite number of travellers who are not destination-concerned (e.g. those just looking for a cheap weekend away in Europe, but don't mind if its Germany or the Netherlands - they may switch to going on a Ryanair flight to Hahn rather than an easyJet one of Amsterdam or whatever.
As for Ryanair not coming to an agreement with BFS - I'm sure they're playing hardball as ever and sticking out for the best deal - while also keeping LDY as an option.
Anyone know when the first subsidised routes will be announced?