kEiThZ
Superstar
If rail becomes competitive in the Corridor then all the parallel air services take a hit. The thing is, I think Porter's business model runs out of air before fast, frequent VIA is a reality, at which point the question becomes does AC/WS get that custom back at Pearson or do they fill the vacuum at YTZ.
Interesting question. If I had to guess, it would be Westjet buying Porter to establish itself in Toronto. Porter has at least proven that neglecting YTZ is dangerous. I'll bet Air Canada is wishing that they had at least maintained minimal Ottawa/Montreal service from YTZ. Not only has Porter sucked away customers, the third player has also depressed yield along in the TOM triangle.
I'm not too sure on the thesis that Porter tanks. How many passengers are really connecting at YTZ? However, the Ottawa and Montreal markets were profitable for them. Losing them to rail will definitely impact profits. Whether than can be made up with more US service is the question. That will determine whether Porter survives or not. But we're a long ways away from that discussion. Anything like VIA Fast only damages Toronto-Ottawa and Toronto-Windsor for them. They'll still have Montreal.
As for running out before rail picks up....people have been saying that for a while. Privately held. Unless you've seen the books, hard to say.