Well, don't write them off just yet. It's not far off the same business model that easyJet started with back in 95 and look where they are today. A paper airline with no AOC using another operators license for flight operations (Air Foyle in EasyJet's case, Flair Air here). Good luck to them we need another low cost operator to make it in Canada.
The 'ancillary' charges on ticket prices are nothing new in our industry these days, it wasn't that long ago the AC where detailing NAVCanada charges on there fare calculations.