One thing A new Virgin Australia will need is a guarantee from Government that they will give it 50% of the government work.Not allow Qantas to have the majority of the Government warrants because the fat cats and politicians want their Qantas club and free red wine.
Thats assuming a new Virgin Australia will still be a full service airline. Most government contracts specify that business class is available. It also assumes that its network will be as comprehensive as QF. I think the policy is still that public servants must use the airline with the best fare of the day but if one airline has a more convenient schedule then thats the airline that will get the booking.