Im guessing the A330’s would pass to Virgin Atlantic and the A319/A320s would be Virgin Express and them smaller Embrears would also move to Virgin Express.
To be fair MME needs some expansion work before it can sustain commited tour operators. When i travelled in 2004 to Tenerife with Spanair it was far too small and the terminal was overcrowded with 2 Tenerife flights going out that evening.