I understand the reference. I see the reality. However, under the legislation (I’m sure others will know it better than me) existing QF red tail Mainline domestic flying must be maintained reasonably should red tail subsidiary flying increase. For example, say the 737s were needed to do more trans continental flying then the 717s could be used on any route QF like as long as the 737s did the hours. If the 737s hours were cut back (Mainline jobs) then it is illegal for any red tail to fill the void.
Under current legislation what you fear is illegal and what you see is company growth which Mainline does not do. The legal transfer of business has already occurred and that is Jetstar.