Maybe the simple answer is that there is no large enough market for a LCY service? Guernsey with 63.000 inhabitants has no LCY service (they have tried twice, IIRC) despite the fact that due to runway restrictions there is no LCC competition and the local airline is state-owned.The combination of a high-cost airport such as LCY - particularly for smaller aircraft - and the economics of regional aircraft obviously mean that in small markets tickets cannot be priced competitively without incurring significant losses as the target group willing to pay realistically priced tickets is simply too small. More people will use such a service if tickets are cheap, but if fares go up in order to levae loss-making territory, these folks will use the more "inconvenient" alternative instead of paying significantly more. As a result, anything that goes into LCY nowadays below 70 seats is either a PSO (Loganair) or extremely high cost (Sun Air) - it is also for a reason that BACF no longer operates the Saab 2000 or Embraer 170.