Yes I really hope the free market is left to its own devices.
By all accounts Rex's regional business model was unsustainable. Lack of parts, pilots, engineers.
Let competent operators fill the void.
Unfortunately Rex had the best business model for an independent regional, they threw the magic formula away more than 10 years ago. They had scale, the right sized aircraft and streamlined operations to minimize cost.
The downfall started in many areas, but the key points are;
One - that they tried to practice adversarial industrial relations in a shrinking/tight employee market, not understanding the real value of key employee groups and the additional costs of low experience in a skilled workforce environment = inept management. The employees were there and left due to no quarter provided by management at key times in history. The new employees, whether it be pilots or engineers have to operate for a number of years to catch up with the efficiency gains the old employees had by experience on type, in the mean time costing the operation more, whether it be direct/indirect training costs or online 'learning' experiences.
Two - they failed to understand the nature of their own machines and operational cost consequences of not investing in continual upgrade of said machines, and additional preventative maintenance of ageing plant and equipment and the consequences/costs of not doing so = inept management. The SAABs would be absolutely fine for the market they exist in for at least another 10-15 years or more, given a proper upgrade program started 10+ years ago, as it is the company played with cosmetics rather than real efficiency improvements.
Three - failure to understand the benefits of proper sustained and targeted marketing and advertising = inept management.
Four - failure to work with employees and target markets to improve and expand services, following the management mantra 'we know best' = inept management.
That being said the other operators in the market Rex will exit are worse and are all struggling at present with the same issues due mostly the same factors.
QLink is almost a carbon copy of Rex in it's problems, it just has a mother-ship to look after it and pay for it's mistakes.
Link, is not doing particularly well, so long term viability is an issue there, they may be fullish, but the contracts with VA are like the regionals in the US of the past keep a lid on profits.
After that it's all minor players with poor track records similar to Rex in management.