Air NZ is stopping flying completely to certain towns in NZ citing high costs.
That's complete abandonment.
No it is not that is commercial reality. The regions have been living in a fools paradise for so long that they think a ticket should be the same as a main trunk jet operation.
was told by operator of Beech 1900 & Saab 340 that about same cost to operate, but one had 19 seats & other 33-37 seats, so 14 to 18 seats at no extra cost.
The Beech is a particularly expensive aircraft to operate, however the SAAB is not much better on a cost per seat as you now have to pay for an extra crew member and the operational cost of part 121 is significantly higher.