Retired BA/BY
I dont disagree with many of your points but not this:
The UK government should immediately nationalise FlyBe and resume this connectivity at the earliest time, like next week !
You could argue this is the removal of an airline from the market that was not being run well and could not manage its debts. The establishment of a Nationalised Flybe would only impact on the profits of those other businesses, Eastern, Loganair, Blue Islands and Aurigny and thereby put them to the wall. If the demand is there, capacity will fill it. There are Public Service Obligation routes that the taxpayer already subsidises but apart from that, leave it alone and let the market find its natural balance. the gaps left by BMI, Monarch and Thomas Cook have all been filled by other providers where there is demand.