I can quite see what's in it from BE's point of view. They get a hundred and fifty million from FR in cool green in exchange for a one million "investment." Even if the new "airline" goes belly-up in short order, the break-up value will be a lot more than what they've put into it. Win-win situation for them.
But one would want to be more than usually credulous, however, to see this as meaningful "competition" to FR. Why would a far smaller outfit than the currently-existing EI, created as an all-too-evident Potemkin village by its giant parent, be expected to last more than a few years at best? And once it goes the way of all flesh, FR will then enjoy an effective monopoly over the Irish market, all for a mere hundred and fifty mill (slightly less than three months' net profits).
Got to give them credit for brass neck, though.