The current Q400 night stopping there supports 3 other routes MAN, SEN & BHX. Newquay would be putting all these other routes at risk is some way if Flybe wasn't awarded the PSO route to LGW
But wouldn't this represent a conflict of interests.
Back in the day the only mainland route out of NQY was LON, if one wanted to fly out of Cornwall there was only one route to travel.
But routes such as BHX, MAN and particularly SEN will be taking punters away from that subsidised LON route and, let's face it, if the operator can fill those seats and take the PSO subsidy aswell then they could be laughing all the way to the bank.