Yes but isn't their strategy about servicing Nauru and the central pacific? It's a branch of the Nauru government to keep Nauru connected to the world.
Sure they could invest in trying to emulate, but it would cost money. Wouldn't it be better just to buy shares in Alliance instead if that's what the Nauru government wanted to do?
Alliance started from remnants of Flight west with very few aircraft from memory. Partly due to their route network & inefficiency, Nauru air don't make a lot of money.
There must be routes in OZ/NZ or short haul, where they could make money, with a fleet of 737s, that if necessary could subsidise the routes they currently fly.
They could start flying any domestic routes in OZ/NZ tomorrow.
By keeping staff levels low, they could surely keep costs down & compete especially for FIFO.
Sounds like there's going to be a glut of pilots soon. Surely a pilot can be employed in Nauru on lower than OZ/NZ wages, but be based in BNE or wherever ?
Know quite a few CX pilots are based in BNE.
Imagine it would be an easier route for pilots to get a job with big boys, flying 737 classics around, ie. not as big a jump as from say a turboprop jockey.
Detention centre on Nauru won't last forever. Currently Nauru can charge OZ govt whatever they want to fly to INU. (fed govt pays contractors on Nauru to charter a 737, up to 3 times a week BNE/INU/BNE). ON are probably the only airline that will get the rights to fly BNE/INU nonstop, right now (why would they let anyone else get on this gravy train ?)
So ON need to plan ahead & need to get efficient, rather than just operate on a cost plus basis.