A little confused aren't we?
The 'one airline - one route' policy was a shameless political manipulation on behalf of CX/Swire by the then British Colonial Government. It was blunt favouritism and protectionism.
It was this act of governance that strangled KA and lead to their near demise.
I would have thought the "one airline - one route policy" is precisely why KA has managed to become financially viable. Isn't this why it is now objecting to the CX application to fly to SHA & PEK? Are you arguing for or against this policy? KA seems to be for it in some cases but against it in others. CX has made it very clear they are against it which is why they have not made any objections to KA's applications for new route licences. The only objections for new licences are those raised by KA! Muddled thinking somewhere perhaps.