One thing I am wondering is what the impact of Continental coming in would really mean. Obviously, the expectation is that prices would drop,
Looking at the
Continental route map, I would suspect that Newark and Cleveland would be on Continental's short list of initial destinations.
Newark: I suspect that they would get a significant amount of connecting (to other US destinations) traffic and at least some Toronto-Newark traffic, although I suspect that total Toronto-New York traffic is sufficient to support multiple carriers. It is likely that the people going YTZ-EWR on Continental will primarily be those that are currently taking AC/Continental from Pearson (for connecting or points purposes) and not the current Porter passengers.
Cleveland: Porter has indicated that they plan to start service to Cleveland, and Continental in place on the route would make it more difficult. On the other hand, Porter could go into Burke Lakefront and avoid the direct competition.
A lot will depend on whether Continental tries to directly compete with Porter are focus on different markets and connecting traffic to feed their network.
There are also a lot of other eastern US cities that are not being served from YTZ that Continental could go to without competing with Porter (Rochester, Syracuse, Pittsburgh, Columbus, Cincinnati etc). EDIT: I took another look at the route map and it doesn't look like Continental is big on non-hub routes.
I don't see fares coming down significantly (in existing YTZ destinations) except perhaps at first on a promotional basis.
if Deluce will make the rent/lease exorbitant and the Port Authority will raise the price of landing fees to the point where Continental can't afford to undercut Porter. I don't know how landing fees work, so I don't know if the TPA can legally charge one company one price and another a much larger one. It might be another advantage that Porter has.
I doubt that TPA could charge different landing fees to different companies (unless perhaps they could offer a reduced "bulk rate" to any airlines that have more than 50 flights a week?), but with respect to gate and terminal fees, those go to the Porter family of companies, so while they will likely charge the same amount to everyone, Porter's gate fees are being paid to Porter so it doesn't really matter to Porter what they charge -- the higher the better. My expectation is that terminal space rentals would be set to recover the money spent developing the new terminal and keeping it running.
Bob Deluce and the other investors want to make a profit -- but it shouldn't really matter to them if the profit comes from the airline or from a terminal company that milks everyone (including Porter) for cash.