Not at all surprised at that news, I would imagine they are more than happy to cancel what would have been a loss making event and Shoreham has presented them with a great reason to do so and withdraw quietly.
They mention that new CAA regs would seriously affect two performances, the Vulcan and the swedish Historic flight.
The Vulcan display would not have been affected as it is not considered to be aerobatic so that leaves only the Swedes that would have been affected.
It was never going to happen as it was ill thought out and very poorly advertised from day one.