I read many of these posts with interest and as an avid airline enthusiast over the years.
10yrs ago Jersey European found themselves under the pin of the likes of Easyjet who were encroaching on their routes between BRS, STN and Belfast. At the time, the comments were that JEA were 'far too expensive' despite having provided good service on these routes for a number of years. Eventually, unable to compete with the low fares, JEA withdrew their services and looked for alternatives. They transformed themselves into Flybe which has proved an incredible success.
The tables have now turned, and as horrible as that may be for Air Southwest, they will need to create some sort of 'unique selling point' to ensure that they can compete with Flybe.
At this time, it's the survival of the fittest. Will ASW be around for next Christmas, lets hope so. I'm sure it won't be due to a lack of trying.