One eyed, why can you understand the DoT attitude? What are you suggesting? If it is what I think you are suggesting, then you might be very wide of the mark.
VS has an interest in how VK performs, in the same way SQ has an interst in how VS performs. They both invested money so they quiterightly want to look after their investment.
Maybe the way forward is for the non US airlines to go bust, claim Chapter 11 and start an International expansion on a far from level playing field a la Delta. The DoT doesn't mind about that.