Low cost airlines have taken a lot of the cost out of the business, however they haven't changed the fundamentals that much.
There are some routes from some bases that simply won't take or sustain a 737 type operation.
This is very much a case of first to market gets the best and most profitable bases and routes. By the time baby got going ezy/Go and FR had cornered off the best routes from the best bases - DUB, STN, LTN, LGW, EDI, GLA, BRS, BFS, NCL, PIK, LPL etc.
Where did that leave - CWL, MME (both low yeilding), EMA (up against ezy) and MAN (which is swimming with charter alternatives).
Oh and the established operators also have a significant number of European bases to make money on when the going gets tough in the UK.
MOL thinks there will only be two big low cost carriers in Europe in the longer term. I'm with him on this one.