If I were Lonsdale, I'd be doing a deal with Stagecoach to buy the route instead of competing on it as I can't see there being enough demand for 2 operators running within 5 minutes of each other on an hourly service. This is going to be a big risk if it is commercial as I can see Stagecoach hitting back, all Stagecoach have to do is re-time by 10 minutes and that's Lonsdale without passengers for a while until it can change the 85, but then again Lonsdale have the headache of having to change the 83 too leading to passengers getting messed about, and as we all know that's not a good idea.
As a side note, rather than compete with Stagecoach, maybe Lonsdale would have been better enhancing one of it's other routes such as the Craven Connection services with additional journeys, or launching a set of once a week excursion type routes, making them not part of the fare cap, to replace the Cumbria Classic Routes? They may have done their homework on these 2 new routes, but if Stagecoach aren't going to give up the 5 then the 85 alone will cost them even if the 83 is bursting with fare paying passengers.