Buster
Expanding a 'Premium' service from the UK to Europe might be one of the last 'untouched' markets left? The lo-co model is suffering from a stagnant market and poor forward bookings for next winter/summer! An interesting concept considering the 'pain' the lo-co sector is about to endure within the UK market.
I still do not think that there are enough pax willing to pay to fill schedules. When I was regularly going to Europe (near as opposed to the newly 'opened' Eastern block) on business in the late 80s and 90s, it was clear that the price did not match the benefits. Any long haul that I pay for myself will usually involve a premium cabin but never for short haul. Friends of mine who can afford premium in long haul - will not pay, and go Y.
What we have seen in the last ten years is that people want the cheapest flight possible. Each new country that has gained LoCo routes demonstrates this. So, the argument runs, there must be room at the top of the market to replace all the biz seats that the legacy carriers have been busily removing. Yes ...
but ... not enough to fill schedules week in and week out. Bear in mind that the legacy carriers still have some biz seats to these destinations and that there are specials (of varying degrees of comfort) from the likes of Monarch who know the routes very well.
Which is why, coupled with where we are in the economic cycle, I think that they are unlikely to succeed. (Success would have to be defined and some might say, 'Still operating an expanding route network after three/five years.')