I would hope that after the AccessAir fiasco, municipalities would be wary to give money to a paper airline or an airline that has no chance in hell of lasting.
The thing is, everyone wants to run an airline, I mean, how cool is that?
But, people don't realize the huge amount of capitol, insurance, uncertainties like fuel, and the decision to get the right equipment. And woe be to those that actually get up in the air, only to have it killed by egomaniacal leaders that surround themselves with yesmen (Western Pacific, National) 😛