Nothing to do with the planes themselves. Basically Ryanair business practice forcing competitors to up their game resulted in an ultra-competitive slim margin industry.
On top of that many smaller cities actually paid airlines to fly to their muicipal airport. The idea that Brest would pay €2000 a day to fly 200 passengers from London to Brest, and those passengers would spend far more than €10 each in the local economy.
Lots of railway equipment (vehicles, signalling systems) is designed and manufactured in Europe, and obviously the construction and maintenance staff have to be, so I don't see why this decision would have been done for Airbus.
I think it's more likely to have been convenient for the politicians, who had incomes that fitted with taking weekend breaks to Paris or wherever, and good for their voters, on a holiday package to Greece.
Further conjecture I heard that I'm repeating with no supporting evidence: it was partly a side effect the Cold War.
All the new airports built well outside cities meant that low cost airlines could offer flights to (near) a major city fairly cheaply, which in turn pulled down prices for the entire market.
Also interesting: Lufthansa is the company which probably good biggest single Corona-support, yet, in Germany.