It appears those who say this venture will not work are;
a) Work for REX
b) Did not get a job at Virgin Blue
c) Did not get a job with Skywest
JB and Skywest have done their homework, they know the numbers they need to make this work. Skywest have grown since the Ansett collapse, they are partly owned by a leasing company so the rate they get any aircraft at will be hard to match. If they go with the ATR it will be the deal of the century, ATR want their product in Australia in big numbers. I've had dealings in the past with two regional aircraft manufacture's and the deals they were willing to do for only 3-4 aircraft operating here was amazing.
I've flown many SYD-PMQ/ AY flights in the 170 over the last 2 years and the loads have always been between 90- 100%, so the numbers are there just the wrong type is being used. So once the turboprops arrive these numbers will remain, however the yield will be much better.