The bigger issue is the Fed Govt's blind approach to sticking aviation into these bilaterals that enables offshore operators to pick up local buisness and do Aussie crew out of a job by driving down T&C's.
These 'open skies' bilaterals are really about "taking pax from (Australia) rather than bring pax to" - it's a double gift for Operators as it still provides revenue and affords the benefits of sometimes less stringent labour and compliance regimes. While the transitioning of ops in NZ has cost benefits, it clearly has more to do with Australian opportunities.
The battle for NZALPA (or anyone for that matter) is that the real remedy lies in superior jurisdictions.
In terms of pax perceptions, let's face it QF premium pax on the Tasman routes have been given third world standards for their dollars anyway (ie., premium price to sit on an ageing 737 400 with no IFE except dodgy DVD's that leave even less room in the J class lockers for pax bags etc etc., or being stuffed into a 738).
It's all race to the bottom stuff and the public are being conditioned to accept it. Not a good outcome for anyone, but I don't think the public really care until the flight is canx or there's a problem/incident.....
AT