^^^^ everything you said is bollocks! Jetstar doesn't give a cr*p about services from Avalon airport. Basically the entire LOW COST business model all over the world is built around going cap in hand to local airports for subsidies for an operation. Ryanair are masters of opening and shutting bases when local airports refuse to continue subsidies. I can imagine the local government responsible for Avalon have been trying to attract ANY RPT operator who is willing to provide jet services direct from Avalon. I would say that the response from the carriers has been 'no thanks, not worth our time', that means the only way to ensure the services is too pay some money. Make no mistake, without the subsidies NO jet carrier would be interested.
Out of interest, there are constant stories in the media regarding the allocation of rights between small regional airports and main cities, what is the difference between these subsidies and what has happened in Avalon??