I can see how a long-haul leisure focused airline would work, and there might be a market out there to compete against TUI. With two bases in London and Manchester - connecting lessor served Caribbean Islands/Central America (Aruba/Puerto Vallarta/Bahamas...), Maldives, Ras Al Khaimah(?), Goa, Brazil (Recife/Salvador)? - which can all tie in to a tour operation, and sell seat only.
Both Norwegian and Thomas Cook have been focused on cities (mainly in North America).
Such a shift though is a risky game...