I agree to an extent.
However, initial subsidies, can be like a loss leader in commercial businesses...something that kick starts something that ultimately leads to commercial viability. I suspect this is the case here. Will the routes become self-sustaining and/or will this attract new players so the combination of all routes become self sustaining. So, the big picture idea is probably the right one but initially, in these difficult times, it’s a tricky pill to swallow.
By the way, I haven’t seen anything that suggests the holiday flights are subsidised?
On taxpayers money, this is central funds devolved as opposed to being entirely funded by local council tax.