Sorry Jack 1985 but I don't recall the report stating that "Some of Flightline's operational responsibilities were being inappropriately exercised by Air Lada and Manx2.com - The report confirmed this." I'm certainly not going to go through all 170 odd pages just to find that particular sentance, but to my memory Air Lada (the aircraft owner) were castigated several times but Manx2 were only advised that their advertising led to the general public believing they were an actual airline. This has been corrected as advised a few posts back.
I get that some people don't like the Manx2/Citywing way of doing business but it's certainly not a new idea. in the late 90s (after my aviation career finished), I drove a coach for a well known National UK Coach Operator. The coach was in their livery, I was in their uniform but I wasn't employed by them and wasn't paid by them. I was paid and employed by the owner of the coach and was contracted with the coach to operate the services for the National UK Company. At that time, the National Company only had 1 coach and all of the other coaches were contracted to operate the services for them. That is no different to Manx2/Citywing getting a fully licensed Aircraft Operator to operate flights using the Manx2 name and in Manx2 livery and wearing Manx2 uniforms. It's all been done before.