Wiley...
Spot on
The end game has always been the scenario you paint...
The scary bit is that they don't fully comprehend the limitation of the "model"; they look at it in isolation: as though Qantas is the only airline. Barring brinkmanship it is largely arrogance/ignorance that drives the mentality that you simply transfer all the work and one day bring it back in re-badged...
The problem remains is that the "model" assumes competitor behaviour is static..In a downturn Emirates, Singapore et al will throw everything including the kitchen sink at this poorly conceived model and dilute whatever so called yeild remains, all the while providing full service.
The premis that a so called "low cost model" is viable ASSUMES you maintain volume if not yield. In days such as present, this assumption always was and is today even more obiovusly flawed..Not that Kohler noticed..
And one other interesting point I recently realised...
Is that when my own AIPA executive fly J* for their holidays (star class of course as they are Captains) they undermine any credibility the claim when negotiating for more $$