I'm putting on the bullet proof vest as I type this. The spiraling of terms and conditions started the day Virgin and Impulse commenced operations in Australia. This was the catalyst for the ridiculously and unsustainable cheap fares introduced into the market, with each company trying its best to a) win market share; and b) destroy the opposition, the whole while consumers are "loving it!" taking advantage of the fares while they last.
All this was coupled with Pilots (Aussie's) keen to return to live in Australia and were prepared to take and accept changes to what was once Australian industry standard ie $230K for a B737 pilot (inclusive of overtime).
Read the QF or
VB balance sheet and you will see that profit from cost cutting cannot be sustained without taking casualties - be it their own or the enemy, and cannot build a sustainable future.
Australia has seen the crash before of discounters and we will see it again.
What's the solution? I'm not sure, but have popped on my thinking cap to resolve a strategy.