Surely the real issue is that the LoCo's have found a whole new market? As far as I'm aware, the established European LoCo's have never had a flying-related passenger fatality? That's a business model that works at every level.
Passengers happy enough to rebook. Company owners happy enough to stay with the business. Employees not sufficiently unhappy that they leave in numbers that disrupt the business.
The rest is simply noise.
