Yes the subsidy was originally to underwrite any losses incurred from start up. They have ended now for both airlines, as they are expected to stand on their own two feet. As Pug said, when the dropping of double Belfast to a single Belfast happened this signified the end, as passenger figures were not holding up to maintain double daily. Of note, as well as Yorkshire Forward, Peel also underwrote much of the airlines start up costs. I purchased some flights for a family member from Doncaster to Florida in June for £31.99 each way. Even at this price the flight was only just over half full when it went out. No wonder the flights stopped at the end of that year!
Sorry for wandering of the FlyBe track.