Great to see the management's determination in resolving the fleet issue which was the last major issue in turning the company around. This announcement will hopefully allow staff to breathe a little easier now.
The problem with the Embraer stems from the fact that the previous managements pricing/frequency/capacity strategy was not correctly aligned with the size of the markets served. The new managment having re-focussed the business model are matching demand with capacity to maximise yield.
It is also worth pointing out that the 175 burns over 60% more fuel per hour than a Q400 - the previous management's strategy of one for one replacement was never going to work considering that the bulk of the route network is made up of short flights that don't play to the Embraer's strengths.
It is not a case that the Embraers are bad aircraft - it is more a case that they don't fit naturally in flybe's route network.
LSM is unfortunately not smart enough to see past the nicer cockpit.