Overun,
Stability may be good for the punters, but when one operator runs a monopoly (and therefore guaranteed cash) on some routes AND competes on others, that's unfair. They are using their protected profits to defeat competitors on the free-for-all routes. Example: the goldfields. Companies can't get into LNO because of the rules, but the incumbent is now attempting to expand elsewhere in the area, using their protected position to fund expansion. That's a little unfair. On routes that cannot sustain a bloodbath, perhaps what is needed is a "two-airline" policy (now there's a blast from the past...) to keep healthy competition going but not to the detriment of service to the punters.