EZY may not be LS's main problem, but FR would absolutely obliviate Jet2, even if they offer better services. The fares that Jet2 offer are far greater than Ryanair on Continental flights. They would find it very difficult to compete to a 'small' airport against the two biggest and most ruthless LC airlines.
If they can find a niche market like GSM and VLM have found, then they could be onto something, but if thy go in competition, they would have no chance!