A base in Milan MXP and expansion to into key Mediteranean holiday airports from Luton? I feel this is more a kick in the teeth to EasyJet while they talk about fleet reduction and optimising their route network.
That said, Ryanair will also be very wary. Wizz is by some margin their biggest competition, simply due to their also very low cost base. I expect to see some form of Ryanair expansion in Milan and London following this.