A PSO for Munich-Southampton? A PSO is a very different thing to route development start-up funding, which is what Flybe had applied for on the route. It certainly wouldn't stop bmi regional launching SOU-MUC in their own right or indeed in competition with any Flybe service, if one ever materialises.
I guess we will have to wait and see how many of the routes for which funding is made available will actually ever start. EXT-NWI looks to be getting off the ground (now Flybe and its franchisees' third attempt at this route) purely as it makes the logistics of the E195 sunshine flying ex NWI but using EXT-based crews a lot easier! I am not holding out huge hope that SOU-LYS, SOU-MUC, NQY-LBA and others will ever see the light of day.