" Air Wisconsin currently does not have a contract with any airline."
Z,
Yes, it'd be hard to get rats to jump on what they perceive as a sinking ship...particularly with so many other "ships" available.
But as for the regional business model, the big industry players seem devoted to it judging by the amount of their system flying done by it. Changing their ways is possible but lots would have to be undone, most of it seemingly expensive.