With WestJet now making noises about an LCC alliance with JetBlue, what other hope is there for a OW domestic alternative to Air Canada? Perhaps a few other recent developments provide some cause for hope.

Harmony Airways (www.harmonyair.com): This audacious Vancouver-based carrier has recently signed codeshare agreements with two of AA's partners - Hawaiian Airlines and China Eastern. Also, JAL FFP members can now redeem awards on Harmony.

Porter Airlines (www.flyporter.com): Scheduled to start flying out of Toronto's Island Airport this autumn (initially to Ottawa), Porter plans to give AC a run for their money on short-haul flights in range of Toronto. Time will tell if this fledging effort has any future, but there does seem to be some serious money backing Porter.

Harmony does not yet have a FFP of their own. Porter is promising one in time for their launch.

Does anyone see a possibility of a national alternative to AC emerging out of some eventual combination of these two airlines?

Nothing about the recent history of Canadian air transport would suggest that it's even remotely likely.