I actually agree with Cumbrianboy.
Leaving the market open to the commercial world isn't necessarily a good thing for an island or rural community. As private commercial airlines need to realise direct profits, this can lead to high fares, unreliable services, chopping and changing routes to suit etc.
Similar to Guernsey, I'd like to see an economic enabler flying the manx flag, i.e state backed airline or PSO subsidy for example. The right fleet (e.g mix of ATR 42 / 72 turboprops) serving the Islands' needs. Regular daily flights, good connections with codeshare partners. The airline might well make a profit if done right however the majority of the profit will be realised elsewhere in the economy. At the end of the day you've got to look at the overall net gain for the economy, commercial airlines can't do this.
As an aside, from a passenger experience point of view, to be honest I hate low cost carriers flying into regional airports like the IOM, these smaller airports aren't really geared up for that. Easyjet simply creates longer queues at bag drop, security delays and a premature standing queue at the gate in true low cost style. Easyjet passengers then have to be crammed into the relatively small pre-boarding lounge just to enable them to get near an on time departure. Environmentally the medium jets are just too noisy for those living anywhere near the airport and they're actually burning about 4 times the amount of fuel on short haul routes compared to the ATR for example. (You could carry nearly double the amount of passengers on an increased frequency with the ATR for the same carbon footprint). Really like flying with Flybe, turboprops are a much nicer experience on board, much prefer the 2 x 2 seating, feels roomier than an Airbus.