OK, as a past case study, do you think AC should have been allowed supersede Porter in YTZ as the dominant carrier (they certainly tried hard enough, or at least to weaken their position)?
So you're okay with a privately held company holding a near monopoly over an infrastructure that belongs to Canadians?
If AC / WJ want to set pricing that benefits all, great. If its purpose is to BK Flair, with $99 flights say YYZ - YVR, thats clearly predatory and certainly the government should step in, in my view.
Rookiepilot, you've discussed your business credentials here, so let's look at things from that angle.
AC offers 15 flights a day from YYZ-YVR, and WJ 8-10, that roughly 26,000 seats/ week for AC and 10,000 for WJ. Now Flair is offering 4 flights a week!? If you we running either airline, how much would you be willing to hurt your own bottom line on this market? Should they slash all their prices 30%? 50%? To try and snare the maximum 600 passengers a week Flare is trying to attract? It isn't worth it for WJ and AC to chase to lowest fare hunting passengers all the way down, not to mention drive down their premium paying revenue passenger fares for less than 2% of low end of the market.
Flair will drive itself out of business, because there are too many fees and taxes in this country for an ULCC to generate new market share. Neither WJ or AC are vulnerable right now like AC was when WJ started or the American legacies were as Frontier, Virgin, JetBlue, and Spirit found their niche. Believe it or not both carriers have reduced their costs dramatically. I can't imagine any way that Flare could operate a B737-500 YVR-YLW cheaper than a WJ encore Q400. Neither airline is going to be in a position where they'll have to decide to give up massive amounts market share or take a major loss (such as Easyjet and Ryanair have inflicted on KLM, AF, BA et al in Europe).
Even at $99 fares (which would include the $25 AIF, $15 security fee, and $12 HST, or over half the ticket price) Flair wont be able to fill their aircraft during off peak times, it's just the nature of the business and their low revenues from peak periods wont carry them far. They're going to fly old aircraft too much with no spares to cover flights when mechanical issues arise, that's when things get really expensive and people get angry. I hope that passengers who do book with them have credit card coverage and they decide to close their doors during a slow period of the years so passengers can find seats to get to where they're going.