Yes, I agree with you. I am of the belief that soon all Display teams will have to prove their profitability to survive. I know for a fact that all teams are now using a standardised contract which in my mind is a few steps away from declaring accounts etc.
I think it likely that the Reds will stay. All of their overseas trips are fully financed by the host country, and although there are only token charges for displays here they are considered to be good for recruiting and keeping HMF in the public eye.
The Reds and other display teams (of all services) are powerful tools in helping British Wasteofspace and other arms companies to sell aircraft, equipments and weapons to iffy regimes in far-flung places (with Govt approval, natch), keeping Labour voting factory workers in jobs and earning millions in corporate taxation for Grasping Gordon.
It would be a foolish man who considered chopping the Reds - which is precisiely why we can expect TCH to consider it!