Here’s an obscure one:
Pacific Wings, which flies in Hawaii and has been beaten down by competition from Mesa’s Go! entering the market, is trying to get back at Mesa. How? They’re going to enter the intra-New Mexico market, which Mesa dominates, relying on the government’s Essential Air Service subsidies. Have you fallen asleep yet? No? Good. Pacific Wings says they will serve some of the same routes (Albuquerque to Clovis, Albuquerque to Silver City), but will not require subsidies. These routes will be flown in a 9-seater Cessna. Comfy! Without the subsidies, Mesa would likely have to abandon the now-profitable and now-government-subsidized routes. Who ever thought that a fight over Lihue-Honolulu would shift to a fight over Albuquerque to Clovis?