Folks,
I don't believe this is a case of CASA exercising "economic" management of the industry. This case is quite well known at YSBK, and in similar cases, similar conditions have been imposed.
Having said that, I am of the view that CASA ( or probably more correctly, some individual employees of CASA) exercise a level of defacto economic control, despite the Act clearly prohibiting CASA from making decisions on other than safety grounds.
Predecessors of CASA have had power to regulate the commercial activities of the aviation sector, old habits die hard.
Then, of course, there are always a steady flow of allegations of what is "favoritism", but sometimes probably bordering on low level corruption, where some operators (regarded by their peers as being rather spotty operators) seem to have a dream run, while their competitors are in never ending trouble.
The matters of which I am aware in detail, that turned out to be justified complaints, were very smartly resolved by the then CASA CEO, particularly Bruce Byron. In each case, the problems came about by the actions of individual FOIs or AWIs, and previous employers or "friends".
Tootle pip!!