Is the decision muddled? Possibly, but it depends on the angle from which you’re looking at it. You’re looking at two different decisions by two different sets of people leading the business and therefore such change is inevitable.
The decision to exit LGW was taken by the previous management team on the back of significant losses. We don’t know if the new management team would have taken the same decision, but the cash generated by the sale will certainly have helped to put Flybe on a more sound financial footing.
Flybe have always carried a high proportion of business travellers and I guess it’s possible that with Cityjet struggling to compete against BA at LCY, and having now been sold to new owners who will not enjoy future bailouts from Air France, perhaps Flybe believe there is opportunity here.
However, with the exception of the information from ACL suggesting an application for slots, there is still zero confirmation from either Flybe or LCY that operations will be launched, let alone a list of destinations they might serve. With no confirmation, I’d suggest that it’s perhaps a little early to start deciding if this is a good or a bad move….. if indeed it is a move at all.