Palmair killed by Ryanair, may be true but I doubt it, Palmair was almost purely for package holidays, Ryanair is a seat only airline, it's like saying Amazon killed Woolworths. The reason is that both the latter were 'past their sell by date' economically and could no longer operate in the new business practices of the day.
TUI (Thomsons) who you also seem to want to get rid of operates almost identically to Palmair using their flights primarily for the package Holiday Market and they seem to do very well. Palmair was a niche market sold mainly through the Bath Travel (now Hays) retail outlets.
I don't think that getting rid of the hand that feeds you is a good idea, especially when excessive cost of operating from BOH seems to be a major factor in it's stalled growth.