Still a bit confused (and I've done a bit of economics).
Simply, I used to fly Qantas (ie last week) 3 to 4 times a week domestically and about 6 times a year internationally and apart from mid-morning and evening the aircraft were FULL (1). I usually check the other international carriers (that I would consider flying on) and they are USUALLY always MORE expensive that Qantas. Add some impressive salaries of Board and Senior Execs (2) and we have a healthy positive. So the 'little people' who are actually fundamental to the airline want some security and even maybe a few more bucks. Is the fare price point right? Doesn't Qantas offer a different product (safety, service, reliability [right!] and the intangibles like iconic etc). So simple Supply and Demand woudl suggest the price is too low. This competing in the marketplace just doesn't wash with me. They are competing and competing strongly otherwise 1 and 2 would not be applied.