It's the cost base, plain and simple.
NZ salaries are lower in dollar terms and lower again due to exchange rate.
Anyone that thinks that Qantas can ever compete on Quality and price. i.e charge a premium for the service, is denying reality, but that is what would be required to return international to profitability. It can't be done with the current cost base. In fact, it is my view Australia will never be able to compete again in the international market until there is a correction to the cost of labour in Australia. The only potential market is the US, as they arguably have similar first world problems as Australia, although they have just emerged from a period of massive restructure post 9/11 and GFC, so chances are we have higher costs than them as well.
What's left? Jetstar to Bali, Phuket, and Honolulu for the bucket and spade brigade. Sad but inevitable.
What will change it? Maybe if the Chinese and middle east carriers create a few smoking holes, then the travelling public may reconsider their options, but even then most people's safety focus lasts right up to the point they have to pay for it, then it's Chopsticks Air to London via a 36hr layover at Fukutoo for $1200 return, with comments about why Qantas is so expensive.
The question that needs to be answered is "is it possible to get the Australian public to pay a premium to travel on Australian carriers". The resounding evidence seems to suggest that the answer is no.
It is no accident that the demise of Qantas has coincided with the rise of Emirates, China Southern et al. Sure we could have gone down the protectionist route and not given those carriers access, but the few Australian jobs that would have saved pale into insignificance compared to the millions of tourists those carriers bring to Australia.
The ending to this story isn't being written by Joyce or Clifford it is being written by Global Economics.