They weren't driving the airport into the ground.
You're someone looking for an elaborate conspirancy theory when the common sense explanation is staring you in the face. The catchment area is simply not strong enough to support profitable operations in the face of
1 pressure on employment and disposable incomes
2 APD
3 $1000 p/t fuel
4 lack of risk appetite and new start ups in the airline business becaue of 1,2, and 3