Isn't there some sort of penalty clause built into the PSO contract? I am surprised that an airline can walk away from the PSO contract within days of the agreed start-up date. I mean although it is not a flight chartered by government, it is, with big tax payers' money involved, not a regular commercial route either on which airlines can do as they please.
I note on Jethro's that Highland are due to acquire two more Jetsream 41s in addition to the two acquired for corporate shuttles - so might thse 29 seaters be an option as well?
Realistically, most of the PSO routes only require a 40-50 seater, if at all. So with Aer Arann disposing of their ATR42s, the ATR72s seems to be a bit of an capacity overkill on the long run to places such as Derry, Knock, Sligo or Carrickfin. Maybe time for another operator with a better suited fleet composition?