Just been reading about the Manx2 crash. Is outrageous that they "got off with it"; to me it is clear that they crossed the line into operating an airline (the thing that clinches it for me is that the airline didn't know who was flying their plane). IMHO even if that wasn't illegal when they did it, it should have been made so afterwards to stop it happening again.
It also looks like there should be a common European Regulator. Can the Spanish / Czech authorities effectively regulate operations on a small island in the middle of nowhere, nowhere near and virtually inaccessible from their countries? Of course they can't :-(