Let me get this straight. The owner of Polar Air has made enough money to pay for Lawyers to take his case to the highest court in the land and he is "delusional"?
We all know that laws and regulations can and are applied very selectively when a public servant feels like it. The CASA regulations, being deliberately vague and self referential, are an open invitation to temptation for an annoyed public servant.
What CASA appears to have successfully argued is that its actions were legal. The question however is a little wider than that.
It appears that the only long term solution is separation of regulation from enforcement.