A fundamental problem human beings have is we are "good" at seeing maximisation, we are not so good at seeing "optimisation".
Couple that with the fabled "S-curve" airlines seem to believe is the Holy Grail and you start to see why QF want to protect their market share at all costs. Above 65% the profit improvement plateaus on a return for market share basis because it costs so much to obtain that additional share, just below 65% there is a very steep growth in profitability as the fixed costs required to run the airline have been covered and there is a section where pure profit growth occurs on a marginal basis per growth in market share.
Not certain I believe it, seems a little to neatly "Consultant Packaged" to be believed as strongly as certain elements do but it is, and has, been a key driver of the airline industry (in Australia a least) for a long time. Protect that 65% share at all costs until your competitor goes away. The alternative is to shrink the airline.
Those calling for AJ to leave because he is cutting jobs need to realise that his appetite for market share is what is keeping as many jobs around as there are, if he was happy to focus on percentage profitability then he would simply have to slash 10,000 jobs, not 1,000 and outsource the balance.
And if you want the QSA repealed make sure you check what that would really mean. Section 7 for instance requires facilities used in aggregate to be in Australia. You sure you want that repealed? Would certainly help to make QF profitable but beware the cost of how that would be achieved.