CO in ACY had everything against them.
To start the flights were at terrible times. They were not convenient for weekend AC trips and made for some long connection times.
Also the fligts were rediculously over priced. If you wanted to go to Atlantic city from cleveland it was like three to five times more than going to vegas. seriously. the prices were insane. This made the flights only connecting passengers in CLE didnt give any chance for O&D on the route. If continental had tried with more convenient times and cheaper fares they would have succeeded in ACY. I think the boost 30% you say is that DL has had great success in ACY even adding service to MCO non-stop and the area is growing. DL has much much more resonable fares out of ACY than continental had and much better timed flights actually giving the routes a chance to succeed.
another thing i think why DL has done so well in ACY and CO failed was that CO operated to the very small and limited CLE hub as DL is operating service to its super hub in ATL. DL actually cancelled the CVG flights and changed them to ATL and mco flights.
also i think TTN would be better for CO than ACY. Northern NJ is just full of CO FFs and looking for an alternate to EWR. I would definitly try TTN over newarks hours of delays sitting on the runway sometimes. ACY is not a real alternative to EWR and is a completely different market as it is far away and is really more of an alternate to PHL than it is to EWR. In the summer too it is way too far away with all that parkway traffic to be an alternate. I think CO would be fantastic in TTN and could survive in ACY if they tried with cheaper fares and well timed flights as people in south jersey need an airport as the recent passenger numbers are showing