Didn't this happen previously in Mount Isa?
Fairly sure it was there, Qantas were operating one flight a day, apparently not at a very convenient time, then Virgin Blue started a daily flight and at cheaper prices.
After that Qantas went up to 4 flights a day (from memory) at cheaper prices, and forced Virgin Blue to pull out.
Then Qantas went back to the one flight a day, and put the prices back up again.
