Ryanair's angle
Interestingly, in RYR's third quarter results statement, they blame loss-making start-ups for some of the price competition they face.
Whilst I can't think of many direct competitors on RYR routes that fall into that category (MYL is the exception), they have obviously suffered a drop in yields, and expect them to go down further.
Looking at where locos are successful, it's to bucket and spade destinations, where they are taking over from the charter boys. The 'business' destinations are less successful (looking at Jet Magic, HLX, bmibaby, possibly Jet2).
My original optimism over Now's chances of survival has diminished because of market trends, its pricing model and its lack of financing. To succeed with Now, any backer would need deep pockets and lots of patience.
Best of luck if they start up. I'll be flying with Now from Luton (as SLF) given the opportunity.