Well actually there is a couple of valid reasons for keeping an in-house airline going.
Firstly, it allows the Tour Operator to control quality. When you analyse Customer Feedback questionnaires, the response for 3rd party operators falls off a cliff, just look at the recent incident at BHX, nothing like going off the runway for a good bit of repeat business.
Secondly, and more critically, you have leverage over the third party airlines with regard to contract cost.
Thirdly, if Thomson and TCX disappear who is going to do the flying? It would be about 4.5 million seats to replace from both fleets, even Easy ain't that big. And even if they were, could you imagine TUI or TCG being happy to be so beholden to one airline?
Nahh, the fat lady hasn't sung for us yet, but shes hovering about in the wings, for sure.