You're all making this too complicated.
It costs Overseas Airline Alpha $x per pilot (or engineer, or cabin crew).
It costs that pilot $y to live in Alpha ... and he walks away with $z left over
It costs Qantas $2x per pilot (or engineer, or cabin crew).
It costs that pilot $2y to live in Australia ... and he walks away with $z left over
So, generally speaking, the staff of all airlines have a similar financial outcome.
However, Qantas doesn't want to pay $2x ... it only wants to pay $x ... and play in the same playpen as all the other cheap airlines.
However, we are saying to Qantas that they can still pay $2x and make a decent profit ... IF, they continue to accept nothing less than technical and operational excellence. That is what will RE-build the brand and what will warrant a premium fare price.
History has proven that many people WILL pay a premium for excellence.