The problem with regional routes is the cost of airfares on trunk routes.
Sounds silly, but because people can buy a cheap fare on Sydney to Perth or even Sydney to London, people translate those fares into an expectation of proportionally cheaper fares on regional routes.
" I can go from Sydney to Perth for 290 bucks, here to wagga is a fraction of that distance and they want 500 bucks!"
The reality is the trunk route fares, as unprofitable as they are, are distorting the expectations of people who fly on regional routes.
This is compounded by the fact that a small regional aeroplane will always be more expensive to run on a per seat basis than a bigger jet - note I said per seat not per block.
People accuse the monopoly operators of price gouging when the reality is they are charging sustainable, profitable fares.
To do anything else would be great for the consumer, right up to the point that the operator goes broke and they have no air service.
The punters in this country have to wake up to the fact they they actually need to pay for some things, not everything is free or subsidised by people who earn over 50 k per year, despite what the old labor government used to tell them!