As a long term observer ( and I stress that) and user of the airline industry I am surprised by this move by Flybe. It seems unlikely to me to really work out.
What is the risk to the airline if it doesn't- could they just walk away after a year and carry on or is survival as they are not an option forcing them to do SOMETHING i.e is making there existing operation at BHX, MAN and SOU as efficient as possible not enough to turn the airline round per se).
I live in North Bucks and have never used LCY so may be I don't understand