For those of you with long memories we're seeing the Manx Line vs the Steam Packet battle played out again. After killing each other financially for a couple of years they merged. Government were terrified at the prospect of loosing the shipping link so they brought in a user agreement to give the Steam Packet a regulated monopoly.
Alas our two present day protagonists have different financial bases, and the one with the bigger pocket will inevitably win, with as D&T says dire consequences for the island's air services.
Many years ago I sat on a government committee looking at elements of the island's future prospects and how to make things grow and be better. I and others looked at transport and a senior member of our island's aviation community asked us to consider a similar user agreement which would also protect amongst other things the LHR slots. Despite our appreciation of his case and recommendations to the then government for such an agreement nothing happened.
The rest is history; the demise of our local airline, and the various bouts of cut throat competition which benefit the islands once a year travellers for a short time but damage the services in the longer term.
Market forces work in perfect markets. Our politicos and their advisors fail to realise that much of the island's marketplace is actually imperfect.