I've enjoyed reading your opinions about the LCA situation and as a local and someone that is here and can see what's happening, I would like to add a few points.
For starters, Cobalt no longer flies to Madrid because it has gone bankrupt and the route wasn't cut before the airline started having its issues. Similarly, with CDG, CY used to fly a daily a330 there, sometimes capturing some BEY traffic as well.
Now, both airports have seen a healthy growth in numbers year on year, with Wizz offering an impressive list of destinations from LCA. Cypriots have been exposed to low fares and basically, there is no turning back now! So, if Wizz launched MAD, BCN etc with the current fares they are running from LCA, there is no doubt that they will be successful. A lot of you have mentioned that Cyprus is meant to be served via ATH and A3. Have you guys seen the prices? At this day and age, families shouldn't have to spend thousands to travel on a 4-5 hour flight. Europe is dominated by low cost airlines and there is no reason why LCA shouldn't benefit from this as well. Locals love to travel multiple times a year with the correct prices and they aren't too keen on one stop flights.
I've flown on VY's former services from LCA to BCN and FCO and I can honestly say that they were packed with people to those cities but with some others that had to transit to Portugal etc.
Today, Cyprus has no flights to France, a market that is very popular from both directions and none to Spain. However, surprisingly, if you talk to anyone that works in tourism in Cyprus they will tell you that they have noticed an increase in visitors from France, Spain and Italy.
To sum it up, the Aegean model via ATH is not sustainable for a tourist destination like Cyprus with foreign and local demand.
P.S fares to ATH from LCA are at an all-time high this year!
Of course Aegean's model isn't suited for a tourist destination like Cyprus, that is why every summer there are thousands of charter flights from all around Europe scheduled to both PFO and LCA. A year or two before CY went bust, CDG was downgraded from daily to 6 weekly and then to 4 and eventually to 3. The A332 was removed from CDG the moment frequencies started to be reduced. By the end it was flying to LHR, SVO, BEY, TLV and ATH. In summers it would go to AMS as well but not more than 2 times per week, the rest of the flights were onboard the A320 with a stop in PFO. Even Aegean discontinued LCA-CDG some time ago and their loads weren't as fantastic by the way. So many airlines have tried this market and nothing has managed to stick.
Seems like Belgium and the Netherlands might have more potential so if anything Wizz Air should try to test the waters by introducing EIN-LCA. I don't see CRL working out with FR flying from BRU.
As for Athens, tickets are expensive because ATH is pricey. There is enough competition with Aegean, Blue Air, TUS and Cyprus Airways all offering flights.
W6 base in Cyprus would only work if in addition to European flights they could expand in the Middle East, especially to places such as Amman, Cairo, Beirut, Dubai, Tehran... and why not even northern Iraq? CY used to operate charter flights every ten days.