This is a sad day for Citywing. They have stuck with it in the IOM for quite a few years now. They have differentiated with small aircraft at high frequency on route that otherwise would not be served or served very infrequently, this is in times when the IOM tourism scene has been in decline. There was no route to Scotland for a time and BLK which is a long standing route would not be operating if it were not for Citywing. Hopefully they can get things sorted out.
I wouldn't be convinced that they will be able to sustain 737s by Titan for long, whether or not Vanair will pay for it, the cost simply would be penal in relative terms and not sustainable for long irrespective of who is footing the bill...