Well why not run with it till it expired, and apply for a continuation?
Boe787, the answer to that is simple, they don't want the route to survive. If it did they would have to order more aircraft and they don't have the money for that.
There is no indication that QF are in that position though a substantial loss may trigger some debt covenants though it is unlikely a bank/creditor would follow through. QF still has access to cash via undrawn facilities as well as fully owned aircraft that could be sold and leased back.
1A_Please, the level of debt has blown out massively under Clifford/Joyce to a monstrous $11 BILLION. They defend their financial position by saying that they have access to $3 billion in cash reserves but that statement involves some Irish blarney in that $1.3B of that $3B is tied up by Credit Card companies (a requirement since the credit rating was downgraded to junk) so they are operating with less ready cash than is desirable.