The fable running around FNQ is that when REX won both the western and northern subsidised routes and did so at the pricing point of
no subsidy
Now this will explain a few things along the way, but is by no means convincing. Either way it matters nought if its all bovine excrement.
The pax loads will never and have never covered the costs on either route, hence the term used in the tender
subsidised.
So there was a bit of fluff that REX were going to pull the pin on the north, who knows, who cares, whats more interesting in this little fable is Virgin saying they are not going to bid for the WA protected routes.
If you cant make money with a 25+ year old, written down (off) turbo prop assets on protected routes..... well lets say you cant make money
REX is betting that Skippers wont pick it up..... nothing more, nothing less.
But do they have the airframes...... if they don't take them from under performing routes.......