I really wouldn't waste your breath talking about the future existence of two of Europes most profitable, fastest growing and dynamic airlines. Its the existence of the rest of the shorthaul competition and bucket 'n spade brigade that merits the crystal ball treatment.
The TUI/Last Choice and MightUnravel/JMC clusterclunks seem to believe that mergering 4 stricken companies into 2 and ordering a load of 787's will turn around their fortunes. Which is unlikley as:
a) The 787 is one of the least de-risked new aircraft in the last 50 years that is highyly unlikely to to quite what it does on paper in the real world reliably.
b) The Era of the package holiday with its roots in Billy Butlins format are dead and buried as even the Northern peoples now have broadband and the ability to make up their own holiday as suits.
As for sheduled point to point EU shorthaul then within 2 years no airline anywhere in Europe will be able to touch the connection and breadth and coverage offered by RYR or EZY. Sure some people will want a more premium product on certain routes at certain times. But most don't.
In the coming recession a great many unprofitable scheduled airlines that have been around a long time will simply go bust. If the market contracts by even a paltry 5% then its not going to be EZY or RYR going to the wall is it?