NIGELINOZ,
Your example nicely describes the point I was making in my earlier post. With REX's cost base, particularly as they own outright many of their aircraft, they may have broken even on your sector to ML with only 12 of 33 or 34 seats occupied. In contrast, neither DJ with a new 78 seat EMB170 or QF-Link with a new 72 seat Q400 will cover the fuel bill for a SYD-ABX sector with only 12 passengers at $96.00 (including Govt. Taxes, etc). At the end of the battle, victory will go to the operator who bleeds the least amount of 'red' on their profit and loss statement. With RPT you publish your schedule and fare and then carry whoever turns up on the day. Did you fly back from ML with REX and if so, how many pasengers flew with you on the return flight?