Although I think it's an utter shambles that there's now going to be 4 Cypriot airlines when 1 barely survived, I think doing routes from Athens, and possibly Thessaloniki could help them cut a niche out for themselves and survive.
For example, Newcastle has had past services to Athens and to Thessaloniki, there is a proven market, but I doubt Aegean are ever going to go for either of those routes. Cobalt on the other hand, could be the right guys for the job. Or Ryanair of course... But Cobalt too