Coming into this pretty late in the day and only got thu to page 2 before tiring of all the bleating - HOWEVER
Plas Tique - you da man - hit the nail right on the head. There are always lessons to be learned from history aren't there?
I think that overall the NZ public has benefited from the competition brought by overseas owned airline(s) flying domestic routes - something STILL NOT RECIPROCATED by our Western neighbours since the infamous fax episode.
I can't see any reason the Okker public wouldn't reap the same benefits with improvements to service and a reduction of fares.
If you have any faith in your aviation product then competition shouldn't scare you - brace up to it.