if LM were a bit bolder they could be in a better position to offer lower fairs and compete with any low cost operator
That’s the exact same strategy that did for Flybe! They offered lower fares that didn’t cover costs and still had competition from the likes of easyJet as their markets were bigger and the step from a Q400-sized market to an A319-sized market was smaller. I wouldn’t wish that approach on Loganair - or even Eastern, come to think of it!