Househunter - yes there is a significant price difference FlybE against Eastern. However Eastern cater for the Business market who need/demand regular/frequent flights at convenient times which is what Eastern provide. FlyBE with one flight a day are not going to get many business travellers who don't want to spend a night in a hotel and waste time cos their meeting has finished but the next flight is tomorrow afternoon.
At FlyBE fares they need to sell 40+ seats for each flight (Dash 8 -400) to make money - Eastern fares mean they only have to sell 15-20 on a Saab. IMHO, National Express East Coast are going to be the losers....