Whilst I agree with the concept shed, FlyBe does indeed market itself as a low-fares airline. I regularly see adverts for FlyBe proclaiming "cheap flights" but over the period of several years I can honestly say I'm absolutely buggered if I've been able to find any. Meanwhile other low-cost carriers are able to undercut FlyBe with much cheaper fares for the exact same customer experience.
The bottom line is, low operating costs should (note italics) mean lower fares. If I can fly with say BA and have a decent hand/hold luggage allowance, included on-board meal, no rugby scrum to get on the aircraft first etc., or fly with BE where I get the "low-cost" experience, yet both cost the same price, as the customer I'll always go for the better option - value for money. It's like choosing between a Rolls Royce that hapens to cost the same as a Lada, it's a no-brainer which one you'd pick of the two.
BE's advantage is that it does tend to offer more frequency of services than other LCCs (e.g. at Inverness) but in all honesty as the customer you have to weigh up the costs and that is ultimately what wins the deal. At the end of the day neither I nor anyone else is willing to pay top-dollar for the low-cost experience; if on the other hand the low-cost experience results in a low fare, that is acceptable.
I always compare flights with different carriers to compare. The differences can be quite astounding. And low-cost is not always "low-cost"!
It's the harsh law of economics and business. I like FlyBe, they have nice aircraft and professional crews, the service is good, but for what it is it is far too pricey. Sadly I get the same customer experience on EasyJet for a much reduced price, so unfortunately that's who'll get my business at the end of the day.
Smithy