It’s just the cut and thrust of competition.
Rex could push back on other routes but domestic thin routes in Australia are actually very thin - I can’t see a 100 seater being supported by the population on those thin routes.
Successful domestic routes need some frequency not just once a day.
Wagga has maybe 70-80000 people.
There are 5 ZL flights and 4 QFlink flights = about 470 seats a day between WGA and SYD. Flights are very seldom full.
I suspect to support a 2 airline each putting on 4x100 seats per day will need a town with possibly at least the size of Canberra. There are not a lot of towns the size of Canberra and Canberra is a government hub with lots of travel .
no one is suggesting anyone putting 100 seaters on any thin route that currently has Saabs, but look at ABX.
There are 3 airlines flying SYD/ABX, QF, VA, ZL with lots of frequency.
Have been told that massive Vail resorts subsidise in some way, flights into EGE (Vail Eagle in Colorado), which takes aircraft up to B752s + military aircraft.
EGE is 30 min drive to Beaver Creek & another 5 to 10 mins to Vail itself, plus many other resorts within 60 mins, including Aspen in other direction. ASE often closes & only takes smaller jets up to about 70 seaters these days.
There are plenty of ways of subsidising a route, without paying cash, when you are a huge resort company.
1000s of Qdlers used to go to Falls Creek & Mt Hotham every winter. Now very few do.
At present the options are either;
1. fly to ABX & get a bus (2 hours plus) which makes many stops
2. fly to MEL & get an even longer bus trip (5 hours plus)
or drive from either airport & then have to put on chains etc.
Because SYD/ABX is all turboprops, there are not enough cheaper seats on any one flight, to make express coaches work, whereas eg. if BNE/ABX was 80/100 seaters, 2 express coaches could work & economies of scale kick in.
No exact idea what a seat on an F100 would cost BNE/ABX but presume around $200. If ABX gave some concessions on their charges initially it might actually work.
+ plenty of Albury residents would surely love a nonstop jet service.
VA could then also offer connections at BNE to all over Qld & overseas.