HZ123:
You're right that there is only so much demand or capacity, and there are a lot of apparent start ups. However, some of these new names are just re-brands, and the market still shows more demand. While the 2 dominant LCAs do take the majority of this trade, others like Jet2 appear to be doing well. Don't forget that EZY and Ryan are their own big problems at the moment, and both may end up having to drop significant numbers of routes. This will give some headway for niche providers.