oapilot: Agree with pretty much everything you say, I have no idea what the comparison on hours/cycles is typically between the two airlines nor was I aware Flybe were putting crews in Hotac. I guess eventually one or other will give up the route then as you rightly say fares will return to the pre competition level whoever is left on it. It was always BA's most profitable regional route.
As this is a Plymouth thread after all...
As I have often said in the NQY thread, these small regional airports will always be limited by the small catchment area and must seek revenue from elsewhere to stay open. As controversial as it may be one decent centrally situated regional airport with a proper network of ground links to replace NQY/PLH,/EXT and maybe even BRS would be a much better bet.... the chance of that happening is the same as filling 747's from Plymouth even if you built a runway that stretched half way to Salcombe!