Flybe ought to be able to achieve significantly lower fares which reflects a lower average seat cost.
Has any carrier ever succeeded at LCY bringing "price" as their USP in that market? No, because that's STN/LTN/LGW raison d'etre to these destinations. LCY is predicated on speed and convenience which the Dash 8 against the ERJ190 just isn't. If they are to have any hope with EDI they would need to swap some of their ERJ175s for ERJ170s.