At what point will the government step in do you think?
Not in our lifetime, and nor should it. Qantas is a private company, operating in a free market. Governments should no more influence the decision-making at Qantas than they do at your local milk bar or pub.
Getting back to the original post, I'm afraid I don't buy the "legacy brand = yesterday's business" theory.
Look at the car industry. The
quality German car manufacturers were confronted with intense competition over the past 40 years, especially given their unit labour cost and strong currency. Instead of running off to Asia (where most of their competition was located), they looked closely at their businesses and focused on
quality and
innovation.
Yes, there were a few bumps along the way, but they seem to be surviving quite well today. Product and brand distinction is essential.