The COO makes a solid case for the model she proposes.
If the entire management team have her focus and clear thinking they are quite probably on their way to a sustainable operation. Staying out of the three largest capital cities has merit. Qantas and Virgin may very well leave them alone to stimulate demand, thereafter they may have a shot or two. First to market has advantages and I would say the real battles will appear some many months after launch. Bonza would need to 'see off the heavies' at that first show down and from there, their prosperity will be significantly decided. Rex, may be a bit harder to assess....... could be more their patch and therefore they may want to challenge the new entrant from the beginning.
That said however, regional Australia has been deliberately kept small by government, industry and arguably by us all. The result for aviation means there's just not the aspirational momentum to permanently embed an airline that flies within the VFR market region to region. Basic living infrastructure and services are dismal for a first world country. Industries, whereupon cities and towns trade amongst themselves and therefore sustain themselves, don't exist here. When those foundations become a reality, the airline economics will become more certain. Its probably true to say there was a better chance at something like this fifty years ago.