Might be time for the islanders to knock their heads together and think about a non-profit airline.
There have been a few, always small and serving a particular niche ( assuming we disregard Aeroflot ) other than Freelandia which was just crazy and should also probably be disregarded.
However it would probably require a different approach to covering costs; perhaps a 'membership subscription' for those intending to fly, plus cost of flight.
Loganair raised margin to a tidy 8% in 2014 despite over £5 million in extraordinary charges, so they're not going to be particularly interested in reducing fares.