The irony is the luggage inside could actually make the 700 a decent 50 seater. Nothing like the entire jetway lined with people waiting for bags to come up, then playing chicken running the gauntlet in an attempt to make a connection. Avoiding misconnects due to miniature overheads alone could be a cost savings.

On a more cynical note, does this pay their pilots less? (some regionals paid by seat count) guessing not but unsure