I'm surprised that anyone with any knowledge of the business is surprised by bidding to operate the jets "at cost." CHQ has been doing this for years and has built a successful business out of it. Some flying has been bid by CHQ below cost on a block hour basis and other airlines have paid to get flying (Air Wisconsin and SkyWest's ASA purchase serve as examples)
To explain, there are additional ways to get paid and most of the profits come from hitting performance bonuses. (The reason why Shuttle America left pax on the ground and rescheduled the airplane, more bonus money to be preserved elsewhere in the system) Some airlines want completion factor, other airlines want on time performance - you see small jet providers tuning their operations to make the most of whatever bonus money there is out there.
When Delta owned ASA, Skip Barnette was candid about ASA not being staffed to run in the top of the rankings because they knew that would cost more money. ASA's goal was simply not to be an embarassment. Under SkyWest and particularly in recent times ASA has visibly improved staffing and equipment standards to get the operation off the bottom and towards the top. I suspect that there is a correlation to the way SkyWest's deal with Delta is written.
The only slight surprise to me was the temporary nature of the base and the fact ASA relocated people instead of offering Tempoary Duty Assignments out of domicile. The moves must have been cheaper than the $1.50 per diem for a couple of months, or perhaps ASA thought once they were there probably they would get to stay (who knows). For those people who leased apartments, or bought homes, this really stinks.
SkyWest really needs to tell people at ASA what the plan is. People are bailing out of this place for anywhere due to the level of uncertainty about ASA's future. In a senioirty based profession it pays to be the first in line.