Countries in Europe with under 10 million population having a national airline, particularly if state owned, has a rather variable history since 2000. Yes, some like Finnair or Aer Lingus have been around for many years... but plenty of others have struggled to remain independent and financially viable.
In connecting Scotland's outlying regions, Loganair has a nice little niche, and flying thinner routes from Scotland/IOM to the rest of the British Isles should work well. Flying to Germany did not. They have a good CEO right now... but I'm very wary of a potentially state owned airline being pushed into flying to places that make for good political soundbites but are commercially lousy