Sometimes flying from secondry airports can be very profitable, vastly lower landing fees, little if any direct competition, slots at peak times and you can combine that last point with no delays and shorter checkin times, convenient and cheap car parking all of which help to attract customers. Plus they offer something a bit different (36 inch pitch, coffee at check in, hot towels etc) which would help to entice people to their airports over main ones.
I think they'll have to improve their advertising, the web page is pretty typical, for example their timetable is quite obviously done by MicrosoftWord, I'm not kidding. Their staff seem nice though and enthusiastic.
Also although the 727's are classic, the fuel situation must really be hitting them hard, although newer planes probably wouldn't save that mch because of higher rentals, I wouldn't be investing much in the 727's because surely they've got to be nearing retirement.
I think they know the area they fly in very well and as a local airline they'll do well. Plus they were doing very well with charters, which if they ever wanted to expand internationally with the name would serve them well in the trans atlantic market. I get the impression those who run it are real "fans" of the old classic clippers, I just can't see this airline becoming anything more than a regional, which really is so sad.