Indonesia is a little more complex than that historically. Not an unlikely scenario; though far more unsavoury domestic issues and medium term security issues likely to arise. PNG could require expensive assistance and most smaller island nations too ( devastated in 1917 flu ). You'd like to think China would help without strategic motive though their move into the region another scenario commanding government funds for security.
Australians need to back up Australians in the future more so than in anytime in recent generations. Not wishing ill on Virgin employees. I hope some logical and less painful outcome can emerge. I recall a shrunken Ansett operation with A320's in administration and Fox-Lew consortium seeking government guarantees. It was a bit of a con though something along these lines will no doubt be considered by the current government.