This has been a wonderful discussion, and I am joining it late in the game. But in any case, I agree with what you guys are saying, but if I may disagree with you Grant on one thing ... (sorry, I do respect you man) ... I do think that AC will not make more money by attacking Westjet directly. It is not a wise business decision, in my opinion.
Like I have said many times before, and has been said in this thread by ramprat, Grant and others, Air Canada must fix their mainline problems, and not rely on maybe making some money (which they wont) with discount carriers in order to feed the mainline part which is bleeding furiously. FIX WHAT IS BROKEN FIRST THEN EXPAND INTO NEW TERRITORY!
Canada needs Air Canada, and all other players in order to maintain some sort of stability. I too flew recently on Air Canada, from LHR to YYZ, and it was a trully exceptional flight. If they keep that service going, and know how to make money doing so, Air Canada will trully be a world class airline.
"it's kind of like an Airbus, it's an engineering marvel, but there's no sense of passion" -- J. Clarkson re: Coxster