I would say thats good business sense.
Why take on Easy and Ryanair and all the extra financial costs involved?
Much better to focus on the more profitable routes with the 757 and expand the growing holiday company and utalise the 737's at LBA where there are new LS routes this summer and less comepition.
Seems daft to critisise a comany for making a good decision but hey, this is PPRUNE!!