It's not necessary to establish a new airline to operate low-cost flights.By the way,Air Malta flights to Tunis,Tripoli and other short-distance flights shall go low-cost.For a-40 minutes-flight passengers does not need more than a seat.
Only U.S. airlines feel the need to start new airlines to go low-cost... witness TED and SONG. Others know that just lowering the costs and maybe scrunching up the seats a bit has quite the same effect... AmericaWest (HP) is a good example of how that strategy can work.
Tripoli will never go low cost for AirMalta or any other airline. TIP is a cash cow. People travel there no matter how much you charge, as long as it is not unreasonable. In fact there are only full fare economy and business class fares on that route.
All other European airlines have formed a whole new different airline for their low cost operation. For LCC you need an LCC structure. Operating with the normal crews and their conditions will never work for LCC flights.