I think a premium service startup airline could find a good, healthy market. Most startup airlines tend to be the super-economy and go after the budget traveler, who would otherwise not fly.

I have been at a loss as to why more airlines don't go after the premium business traveler. An airline that had all premium seats would be very attractive to the full-fare business traveler. Always first-class seats, service, and meals and a generous frequent flyer program are, in my opinion, ingredients for an upstart airline to succeed. Their routes would most certainly be "matched" or even undercut by the already-established major airlines which would mean they would have to be very efficient and have a good backing.