Not sure why so many are obsessed with the issue of Manx2.com being a virtual airline. Sweden, for example, if full of them (just think of all those "xyz-flygs"). The criticism always seems to relate to the use of Spanish, German or Czech airlines - I have not seen Links Air being mentioned here. So one could get funny feeling that behind the criticism is the idea that only airlines from the UK can provide a decent, safe and proper service....
From my point of view (as far as the travelling public's perception is concerned), franchising is not much better that the manx2.com concept as the image is created that the passenger is doing business with someone else than he actually is . or maybe even worse as usually a much trusted brand is being franchised.