Groundhog and Mathers,
Sorry to come to this a little late but there are a couple of other points to consider on the economics of the LGW runs.
Firstly, the Q400 costs are significantly higher than those of the 300, and that includes leasing costs. Please believe me, a half full 300 will make less loss than a third full 400. Also Flybe have the extra cost of HOTAC/positioning crew for NQY, which is usually hire car.
I acknowledge your point about LGW direct, but in truth Groundhog there is always ultimately a compromise. You are benefitting at present from the fact that there are two carriers on the route. If Flybe succeeded in forcing WOW off the route you may still have your nice convenient service but you will pay significantly more for it, if previous form holds true. Ultimately, if the route doesn't pay it will be dropped or reduced in frequency.
I suspect Flybe would love a monopoly in the Southwest, but it is unlikely that in the absence of Air Southwest you'll ever see regional aircraft permanently based West of Exeter, so the local community will have to take whatever rotations route through NQY and be grateful, or else drive to Exeter/Bristol if they want to fly.
You pays yer money and takes yer choice.
Skybus are a great little company, but LGW is an awful long way in a twotter!
PS sorry for drifting the thread again, but the maintainance of a proper airlink for the region is important so wanted to shove my twopen'rth in.