That was smaller than 50 seaters, I thought. Also more isolated, so limited in size. I think 50 seaters have always been pretty viable, though on the risky side, especially if you try and stop at 5 or 6, and keep them on the tarmac too long.
Price mechanics do make that much difference, too. At least, I think they do. 70 pax route, previously you'd put 2 x 50 seats. Now might put 1 x 50 seats and charge 30% extra. Similar revenue, less overhead. Should work without comp, anyway. I know I've been getting full loads on FCO-LHR in MT7, despite 30% or more markup, as route is only about 80% supplied because of slot constraints.
I'm very confident this will be a successful airline, even with the $800 fuel price on day 1.