From their 'metrics' Porter would appear to be flying at 50% capacity, with no competition on the Island.

They couldn't come up with a way to fill those empty seats with paying customers? Discounts didn't help? Cutting the schedule wouldn't do it?
Could we not infer from this that perhaps the market for their product is not 'unlimited'?

Or should I conclude that Porter can 'increase' revenues by 100% without adding a flight and that Porter is 'choosing' to fly their planes with 50% empty seats?

However, if Porter could not get paying customers in those seats now, with no competition on the island, would it not be safe to assume that they might have some difficulty filling them when competition arrives?

Next, Porter point out that this soon to arrive other airline will only have 47 slots to their 112 current, or 157 future, slots.

So.. will Porter's costs will remain the same when they increase flights, that are 50% empty, by a frequency of 40%? And more importantly, will Porters revenues 'increase' while they undertake this, when every 4th plane taking off contains paying customers not flying with Porter?

I myself would think that Porters revenues might drop and their costs might increase. Given these numbers, would it not make sense that Porter might experience a 25% drop in revenues, along with a 40% increase in costs?

But then, Porter do control the terminal and everyone will have to pay them for space in that terminal, not too mention fuel. So.. Porter may be able to make out like bandits charging whatever they like for space and fuel. And I guess these other tenants / airlines won't mind too much.

So, just how stupid do I have to be to get in on this?

-James Peter

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Just look at one number, load factor. No airline has ever survived with less than 50% of their seats filled. Anyone stupid enough to invest in this airline deserves to lose their money. As soon as all the money from this ipo is gone, then the doors will close forever. The only chance Porter ever had was in a permanent monopoly situation if they were able to at least fill 75% their seats, of which they have neither. Don't get me wrong, I would have loved to have seen them flourish, and raise the standard of air travel in this continent, but they paying public wants to fly for free, so they will get what they asked for: Walmart in the Air.

-Get Real