I'm sure they will do fine for a while cherry picking from AT and it may drive some prices down, but don't expect this to be driven by Rouge.

They are out to cash in on the LCC market - I think AC management types dream of Ryan Air and Spirit Air at nights. They are betting on the non-savy casual flier who thinks they are getting a deal. At best one can hope for some type of Thomas Cook model ie: based on bundling with AC vacations etc. This is not an "airline" for the FFer and anyone who argues that is off their rocker.

IMO The ultimate plan is to shift focus to the non-union LCC at the expense of the mainline carrier. As the cheerleaders keep saying it just shows how brilliantly run AC is and it this will surely translate to Lipstick.