All good arguments but what about the SAR cover the Aussies give to all the yacht racing in the Southern Ocean? I know they were getting a bit fed up at the number of 'Bullimores' they had to pull out of the sea but it still goes on and they still rescue people. And what about Mountain Rescue Teams? Unfunded by government in the UK but tirelessly going out to rescue lost souls 'enjoying themselves' in the hills? Do we just abandon people in the hills?
What do we provide SAR cover for and what not? I would suggest a basic cover of our sea areas is not unreasonable - people don't make a cost benefit risk analysis when they buy an airline ticket, they just go!!
SAR does airliners,ships,yachts,military,oil rigs (think airborne co-ordination for Piper Alpha) and lots more besides. A C130 can search and drop liferafts but probably doesn't (I don't know) have as comprehensive suite of sensors or comms to co-ordinate a large task. Being 'on the spot' for co-ordination is invaluable and as an argument is being translated to closure of HM Coastguard Stations at the moment - loss of local knowledge etc.
The reality of airliners is that survivability of a ditching is low but some may survive and if dropping ASRA kit to them gives them a chance until a ship or helo arrives, then the mission is accomplished. Nothing gets there in anything like reasonable time with a fighting chance of searching for and locating survivors or wreckage like a LRMPA.