EI-BUD is quite right, Flybe's biggest asset is that it isn't a low cost airline and shouldn't behave like one. They are a regional airline, connecting cities that are otherwise too thin for the locos or have an advantage over the locos (runway length or operation constraints).
LCY should work if they have the correct mix of routes. Doing UK domestic might not be the right strategy on this - and a weekend AMS seems unusual. Going head to head with two established players, even with one wounded, on the same routes was always going to be tough. Having routes out of both Southend and Stansted is never going to help the situation.