IMO today's decision is well reasoned & supportable. And, no, I am not an apologist for AC.
AC did assume accrued liabilities for as many as a dozen legacy carriers - EPA, PWA, Nordair, CP Air, just to name a few. Were they obligated to do so? Yes, as a result of union contracts.
AC's competitors face no legacy pension expenses. None. Their time will come (just look at what is happening at United!) but for now they bear zero obligations.
As for limiting exec pay and bonuses, that's a pretty bold move for a Conservative government. Paul Martin would have never interfered with the free market in this way! Kudos to Jim Flaherty for getting this one right!