What did O'Conners do out of Mount Gambier when Ansett fell over and took Kendall out with them, you guessed it, at the behest of Qantas up went the fares, enormously.
I call BS!
All airlines take some advantage when they can but some seem to be more willing to do it than others but some do think locally and long term.
Airlines are businesses and rightly so, ask the residents and vistors of Meriimbula, Moruya and King Island how 'benevolent' Rex are, I'm sure you will get a completely different picture...