The bankruptcy of Thomas Cook was possibly a good thing for the Tenerife hoteliers. It removed the market power of a highly integrated company that controlled not only distribution of holidays to the masses, but also bought up at cheap rates large volumes of hotel rooms, and finally had its own airline which prevented other airlines from charging high prices to transport TC's retail customers. Condor, the only substantial survivor of TC, is a much weaker company than it was in 2018. In its place, transport to/from the Canaries is now based more on the likes of Ryanair and Wizzair who have very little market power outside the domain of air transport
It's been suggested that the new airline would fly from Tenerife to both Cardiff and Glasgow to restore connectivitiy. However TFS-CWL is flown by TUI and Wizz, while TFS-GLA is flown by Easyjet, Jet2, Ryanair and TUI - i.e. competition amongst airlines already exists
The only good reason I can think of to set up this airline, is to show demand exists for travel to the Canaries from specific small airports - e.g. Inverness or Humberside in the UK - and thus encourage other airlines to open routes. That said, it would probably be cheaper for hoteliers to pay some sort of marketing subsidy to an airline to fly a desired route for a winter or summer season or two - and hopefully the airline will stay on the route after the subsidy ends
There are of course various less good reasons I can think of - mainly based around vanity and business arrogance
Anyone else understand the rationale for this new airline ?