Dick, you are correct in a sense ... that sense is that IF QANTAS wants to compete in a low cost environment, then it has to lower overheads.
But myself, and others, have suggested that the best bet for QANTAS to live a long and happy life is NOT to foolishly compete with the LCCs ... instead, maintain(create?) a premium brand, with a premium product, with premium maintenance and equipment, going to premium ports, at a premium fare.
The only question is ... is there still a market for a premium product?