I saw news of the cuts earlier. Disappointing, but not too surprising if the times were lousy. I think there's likely a chicken/egg thing at play, but sounds like YYC and WS are too busy to worry about route development like this, and likely don't have many landing slots to spare at peak times.
That said, I think these are important links if the province is serious about encouraging business and population growth in the smaller cities.
Ultimately the regional rail initiative should take care of this, but I think a better stopgap service than coach buses is needed. While they can be a reasonably comfortable journey, they are still bound to road limits with weather and traffic, making the trip a not very compelling 3 hours, minimum.
As a better stop gap, I wonder if the market would support a helicopter based airline if the ticket prices and frequencies were reasonable?
By my web search estimates, it would cost around 10-15 million a year to run a pair of chinooks (~30pax) between Calgary and a smaller city within 300km three times a day. That seems like a reasonable subsidy for the province to cover until regional rail can take over.
There's potential to open up a number of new locations in BC that weren't easily air accessible too, golden, revelstoke, invermere, where tourist demand may not even require a subsidy.
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Using a 300km range for the map as that's roughly the hourly speed and non refuel range for the Chinook, allowing for low/no cost destination facilities. They also have good reuse / resale value once they are functionally replaced by rail service.
As it seems like runway pressure is part of what is making direct flight hard to justify, a Calgary heliport likely couldn't be located at YYC directly, but I think the platform parkade downtown might be a good candidate? Expand it upwards with a flat deck and has nearly a direct link to the planned transport hub.
Ok, now who wants to fund my kickstarter!?