.....there isn't the population to support more services.
A fallacy. A few decades ago reasonable frequency was the critical factor, resulting in aircraft size and capacity being dictated by the requirement of a regular frequency schedule. Then CAA/CASA decided to kill off regional airlines and Reg 203 services (all except the protected few one) thus today the airlines use over capacity jets at the expense of a reasonable frequency.
And Government has almost gleefully permitted one major airline to buy up almost all their competition. Even if the latest acquisition was denied by the ACCC on the grounds of "competition" both airlines can, with broad smiles, deny any connection even with a 20% equity holding and Board seats.
Australian airlines is still a big club. There are those that are members and enjoy an element of "protection" and those that must stand on their own until the nominal equity runs out.
Back in the 'good old days' of the Two Airlines Policy, were airfares actually regulated....
I should know but don't remember, Actually regulated air fares was totally unnecessary as airfares, Government subsidies and other delicate financial and operational matters of mutual interest were discussed and agreed over regular lunches with a few fine reds. I still recall the Ansett fares by flying boat, for two people Hobart - Sydney return was £800 in 1952, slightly less than the price of a new FX Holden. Airline profits were as inevitable and guaranteed as the fine reds at regular "business" lunches.
