Let's not lose sight of the cost per seat involved. The Rock will never have a Ryanair or Easyjet without a longer runway, and a willingness by the government to put all their eggs into one 190 seat jet to Liverpool or Manchester per day, which is not going to happen. So for as long as turboporps are flying routes, fares should reflect the cost of flying small capacity aircraft on relatively price sensitive routes. We're kidding ourselves if we think airlines will pump loads of seats out on prime time flights at low fares.
Supply and demand, convenience and need to travel, aircraft speed and ferry crossing times. The customer has a choice, but if the airlines go all silly again and try to see who has the deepest pockets, we're stuffed, yet again.
Let every airline find its niche, serve it well and economically; if they step out of line with what the other airlines could provide on that route, they will pay the price by inviting competition, so indirect competiton should keep manners on the fares charged.
I get the impression some posters know what they are talking about, but many cannot see beyond the haze of Ryanairesque fares. Get real. Airlines are businesses, they need to make money. If Islanders want reliable services, they need to pay economical rates for all parties.
If the existing airlines cannot get the fares they need to continue the service, they will drop out. And then what will we have - there are very few suitable airlines with turboprops left in the UK, and one at least has props which are too expensive for 30 minute flights. Just think about it.