The main hub of Co Lite was DEN and was what mentioned so far has been mostly right on spot.

Judging from today`s experience, CO actually indeed did all things wrong that can be done wrong when opening up an Low(er) Cost Carrier ( affiliate ), however some assumptions prooved to be become true later on, mainly create demand through ( massive ) [ theoretically over ] supply, a common practice by all European LCC`s for example.

The UK CAA made studies that people flying Ryanair did not care about their destination, they just bought the cheapest available ticket to get away as cheapo as possible..., this is a very interessanting phenomenon, so theoretically people from X would travel to Y, if the only the price is low enough.

However the biggest problems of Co Lite were high costs ( generally high labour costs ) and additionally high operating costs , because they operated literally every aircraft they had in their fleet and CO was at that time still a mixture of several good old Lorenzo takeovers...

And as pointed out, they operated to places with mainline sized aircraft multiple times a day that do not even have a handful of regional air services these days....