If SQ are currently making record profits, based on they're current routes, doesn't this suggest that there is potential for QF to pick up unused capacity on these routes? Although of small size, Singapore is still a vital business destination.
If the pacific route is still under capacity, there probably wouldn't be much movement in prices on the SYD-LAX route. However, don't you think that both airlines would have incentive to lower prices if they are not experiencing the current loads?
As to your question about the other benefits:
"Flights no cheaper
oz jobs going overseas
profits going overseas"
Isn't this in line with QF current plan to move jobs to Asia? They should be proud to support this.