It’s a great question, and scale is important, but being another someone else won’t work. Which is why Bonza did what it did, but a low cost, sustainable regional like aircraft isn’t available, likely in the far future, just nothing at the moment. It will likely be something electric, but not in our lifetime.
Rex is now operating on all these high margin routes, it’s just they don’t know how to chase that margin, they are loss making. They need new management in order to move that place towards profitability, it appears they are heading for bankruptcy. They have little in the way of corporate accounts, next to no corporate revenue, so they fly lighter during the week, and heavier on leisure weekends. It is very strange, as they appear to be just doing absolutely nothing and watching the place burn down. I assume they want government handouts to save the Saab bit?