You have to think a bit beyond the flight deck on this one Timmee.
It would appear that there is a lack of capacity on the Pacific routes. This means that tourist and business dollars are unable to get to Oz. So while it might be good for QF to keep its flights full on these routes, it is not helping the tourist industry, or the economy as a whole. Who knows, those bought in by a foriegn carrier may have to travel QF to get around that great big country.
Interesting that both EK and SQ are mentioned here, as both operate from true open sky countries, and the competition does not seem to be hurting them too much.
So I am sorry, but I do not agree with this we must protect QF from all the bad guy operators from overseas. If it is OK for QF to operate to SIN and beyond, then why shouldn't SQ be able to do the the same in Oz. If QF is not up to the challenge, well they need a better management, not government support.
Don