Don;
Actually your comments are about aviation ACCOUNTING, not ECONOMICS. There is a difference.
QF or whoever are perfectly entitled to marginal-price routes (which is what you seem to be implying EK do). It's also what economics theory suggests is the most efficient (value-creating) method of doing so.
As for your earlier comment:
What do they contribute to the economies of Australia and New Zealand when they are offering fares and rates that are certainly less than the real cost of production?
Well, in that case, their contribution to the local economies is substantial. You might be forgetting that there is a portion of the economy that exists outside of aviation - EK pricing below marginal cost is a gift to that economy. Sure a local carrier might suffer, but the gain to the rest of the economy is greater than the hurt to the local carrier. Give a local a cheaper fare, and they'll have more money left in their pocket.
Sorry, but that is the harsh reality...