I think that we've really seen what low-fare flights can do to a certain market, I have from East Midlands Airport.
Before the arrival of bmibaby, we had a very restricted catchment area of Nottingham, Leicester and Derby, and we didnt get much traffic besides the odd charter, bmi regional or DHL flight.
Now we get passengers from as far as Newcastle, Leeds, Birmingham and Northampton travelling for low-cost flights, and its now extremely busy.
Like EMA, London Manston has a number of small cities within easy reach of the airport; Dover, Folkestone, Margate, Ramsgate and most of the Kent region.
So, I think if bmibaby can make a decent thing out of a small place like EMA, a new airline could definately do something out of LMA, like EMA 2 years ago restricted to charters and cargo.