Very sorry to hear about Duo. Hope all the staff find jobs ASAP.
As to the situation in the low cost market at the moment all I can say is there are no new stories here. Too many players and a public hunger for lower fares. The result airlines running on ever-tighter margins. The real loosers here apart from the staff will be the public.
Once the war ends fares will rise as the competition falls over. In the mean time more and more passengers will loose money and find themselves stranded as so called low cost operators go bust.
Interesting watching the BBC on Sunday morning pointing to the lack of ATOL bonding for low cost airlines. What they failed to mention is no schedule carrier has any protection for the travelling public; it is a risk you take when you book! The package holiday may be becoming unfashionable but it was always a safe option, as you will always get your money back if the worst happens and you will always be brought home. In short you may not be saving money with DIY packages, you may in fact end up spending a small fortune.
But in defence of low cost operators you have no more protection from cancelled flights or failure of the company booking with any of the major carriers.