Call100, I think you are missing one of the key points. A few years ago there was a discussion document sent out in advance of a white paper being issued. There were forecasts that in 30 years there was going to be (and I can't remeber the exact figures), but something like 3 times as manay people flying as now, and how was the UK airports industry going to deal with this increase?
One of the suggestions (as previously mentioned above) was a mammoth new airport in the Rugby area - a complete red herring - others were for a 2nd runway at BHX, a 2nd runway at EMA, and alls sorts of expansions at other airports outside the Midlands.
Coventry was sitting there seriously under-used. BMA had moved on, Ryanair had too, and there were few if any scheduled services taking place from an airport that had had them previously for many decades. It was suggested that if Coventry was developed to take maybe up to 10m pax (OK, that would require a lot of development, including a short runway extension, parallel taxiways, big terminal etc. but no second runway and no land-grab), then BHX and EMA would not need their 2nd runways and major land-grabs (and MAJOR objections, especially in Solihull), and overall Coventry would be helping the resolve the problem of the increase in pax over the next 30 years.
Now before you all start arguing that this and that couldn't be done, it is important to bear in mind that this argument was made to allow Coventry at least to be a part of the process and not forgotten about. There was no expectation that there would be a sudden development, but there would be a gradual one, one sufficient to cope with the increased demand.
Whilst all this was going on I was working for an airline that was negotiating with the airport operators to start a low cost operation that never happened, but should have done. It was beautifully thought out, but ultimately the finance could not be raised. (That's another story for another day.) But I did get to know what was hoped for at CVT at the time. No idea what the owners are planning right now, but having bought the place for over £20m, and losing money at a fast rate, I think they will be thinking very hard.