Choosing the nondominant strategy in a duopoly
It seems you interpret the game as a sequential game. If Windward would know that its move was observed by Airtouch it would act as you say. But this is not the case, they move simultaneously, and it is a one-shot game (as defined it is only played once).

Given your reasoning, Windward understands the situation and hence it would choose the evening. Anticipating this Airtouch would do the same. But Windward does not really want to choose the evening. If Airtouch anticipates that Windward will choose the evening that's jolly good for Windward. It is even better if Windward goes on to choose the morning. So what you describe is not an equilibrium outcome and is unlikely to occur in a one-shot situation.

Don't believe me? Let's play. As Windward I understand your reasoning and I make the empty promise of choosing 'Evening'. What will you choose? (And me?)

The situation would be different if the game was repeated, so if reputation was important or if, as I mentioned before, the game was sequential and moves could be observed.