Your absolutely correct bafenguy.
The race by the major airlines to "buy up" their regional affiliates was a calculated move to exploit and benefit. The problem for the majors now is that a significant source of their revenue is generated by regional flying, even though much of this transcends state borders.
They'll either have to take ownership of the situation they created or ponder going back to chapter 11!
Reap/sow, common story for clever bean counters.