My cynical assumption is that they believe that having a separate brand will help attract that brand of well-heeled tourist who wants to visit Scotland but doesn't want to interact with any (red-headed, kilt-wearing, whisky-swilling) Scotch people.
Yes, they seem to want to attract rich tourists who turn up expecting the all American hospitality offerings with porters and silver service etc which is never going to happen. Normal people that you'd call the bread and butter find themselves being priced out the market and relegated to being only able to afford the seats.
The fact that it needs to be subsidised, despite its frankly outrageous pricing is downright absurd.
More subsidising MP luxuries, just what we need in these times!
The subsidy is off the scale, Serco bled it dry as well.
Merging it back into ScotRail would allow some cost savings. Though they wouldn't be huge, it would be around the edges like duplication of customer services functions.
They could easily save money by merging with ScotRail and straight off the bat as you've got duplicate management that is not needed at all. The whole backroom could go as ScotRail already have everything long established and set up.
Train crew would merge into the respective depots they work out of in separate sleeper links, easy to do
Current Conductor managers would just absorb them into their 'teams', easy to do
All training could be moved to Glasgow removing the need for that place in Perth, easy to do
ScotRail control take over the operations side of nightly running, easy to do
Those lounges at out stations that are never open anyway could be closed. (rumour is thats happening anyway)
Costs saving would be considerable in the long run
With the creation of GB Railways I do think merging will happen at some point in the future.